Warhorse Studios is developing an open-world role-playing game set in J.R.R. Tolkien’s Middle-earth and a new Kingdom Come title [1, 2].

The announcement marks a significant expansion for the Czech developer, as it moves from historical simulation into one of the most valuable intellectual properties in fantasy literature. This shift allows the studio to apply its immersive open-world expertise to a global franchise with a massive existing fanbase [3, 4].

Warhorse Studios, which is owned by Embracer Group, confirmed the news via its official X page [1, 5]. The development is taking place at the studio's headquarters in the Czech Republic [5]. This project follows the studio's success with the Kingdom Come: Deliverance series, which focused on grounded, realistic medieval life [1, 2].

Reports regarding the financial scope of the project suggest a development budget of $100 million [6]. However, the studio has remained cautious about releasing specific gameplay details or a release window. A spokesperson for Warhorse Studios said, "We're excited to tell you more when the time is right" [3].

The studio is balancing the Middle-earth project alongside the creation of a new Kingdom Come game [1, 2]. This dual-track development indicates a growth in the studio's capacity to manage multiple high-budget titles simultaneously. While some early reports characterized the Middle-earth project as a rumor, the studio's official communication has since confirmed the development [2, 6].

Warhorse Studios is developing an open-world role-playing game set in J.R.R. Tolkien’s Middle-earth

This move signals a strategic pivot for Warhorse Studios and its parent company, Embracer Group, by diversifying their portfolio with a high-profile licensed IP. By combining their experience in realistic, immersive world-building with the expansive lore of Middle-earth, the studio is positioned to compete in the AAA open-world RPG market. The reported $100 million budget reflects the scale of ambition required to meet fan expectations for a Tolkien adaptation.