The historical Czech world of video game Kingdom Come: Deliverance is heading to the big screen, while one of cinema’s biggest fantasy franchises is coming to Prague for its next video game adaptation.
Prague-based developer Warhorse Studios is preparing its most ambitious project to date: an open-world role-playing game set in the universe of The Lord of the Rings. The announcement marks a major milestone not only for the Czech gaming industry, but also for Prague’s growing role in global entertainment production tied to major film and television franchises.
The project was confirmed this week by parent company Embracer Group during an earnings call, where CEO Phil Rogers revealed that the studio is developing a game set in Middle-earth. While few official details have been disclosed, the news immediately drew international attention due to Warhorse’s reputation for large-scale historical RPGs and the enduring popularity of the fantasy franchise first popularized globally through The Lord of the Rings films.
The announcement also comes during a period of rapid expansion for Warhorse, whose recent success with Kingdom Come: Deliverance II has elevated the Prague studio into the upper tier of European game developers. The sequel reportedly sold more than five million copies within its first year and earned several major industry accolades, including a BAFTA Games Award for narrative.
You might have heard the rumours, it's time to reveal what we are working on.
— Warhorse Studios (@WarhorseStudios) May 20, 2026
🗺️ An open world Middle-earth RPG.
⚔️ A new Kingdom Come adventure.
We’re excited to tell you more when the time is right.#WarhorseStudios #Annoucement #lotr #KingdomComeDeliverance pic.twitter.com/Pcgf9SqW52
A major leap for Prague’s gaming industry
Warhorse’s move into Middle-earth represents one of the highest-profile entertainment projects ever developed in the Czech capital. Communications director Tobias Stolz-Zwilling described the opportunity as “mind-blowing” in a social media post, emphasizing the significance of developing one of the world’s most recognizable fantasy properties in Prague.
The studio later confirmed through social media that the game will be an open-world RPG, accompanied by teaser artwork depicting locations from Middle-earth, including Mordor. Although the company has not announced a release window, platform details, or storyline, industry reports suggest the project could carry a budget approaching $100 million (around CZK 2.1 billion), far surpassing the scale of previous Warhorse productions.
Such a budget would mark a dramatic increase from the estimated costs associated with Kingdom Come: Deliverance II, underscoring the growing confidence investors and publishers have in the Czech studio. While those figures remain unconfirmed, the scale of the project reflects broader industry trends toward blockbuster development centered on globally recognized intellectual property.
The decision also reinforces Prague’s expanding importance within the wider entertainment sector, following a revamped incentives program that extended support to the video game industry. Although the city has long been known as a filming destination for Hollywood productions ranging from Mission: Impossible to Blade Runner 2099, Warhorse’s new project highlights how major international franchises are increasingly being developed locally rather than simply shot in Czech locations.
Middle-earth itself remains one of the entertainment industry’s most valuable fantasy settings. Interest in the franchise has remained strong through projects such as Prime Video’s The Lord of the Rings: The Rings of Power and the upcoming film The Lord of the Rings: The Hunt for Gollum tied to the property. For Warhorse, the challenge will be balancing expectations from longtime Tolkien fans with the studio’s own design philosophy, which has traditionally emphasized realism, immersive storytelling, and historically grounded systems.
Expansion beyond Kingdom Come
The Middle-earth announcement arrives as Warhorse continues to broaden its ambitions beyond the Kingdom Come: Deliverance franchise that established the company internationally. During the same earnings presentation, Embracer also confirmed that another Kingdom Come project is currently in development, though executives did not clarify whether it would be a direct sequel or a spin-off title.
The simultaneous development of two major RPGs suggests a significant expansion of Warhorse’s internal operations. The studio has grown rapidly in recent years, evolving from a relatively small independent Czech developer into a large-scale production house employing hundreds of staff.
That transformation has already extended beyond gaming. Earlier this year, Warhorse co-founder Daniel Vávra confirmed he was stepping back from his role as creative director to focus on a planned screen adaptation of Kingdom Come: Deliverance. The live-action project, currently in early development, is intended as either a film or television production aimed at international audiences.
Warhorse’s involvement with a franchise as culturally significant as The Lord of the Rings places the studio under unprecedented scrutiny. Expectations surrounding adaptations of Tolkien’s world are notoriously high, particularly following the cinematic legacy established by director Peter Jackson and the continued expansion of the franchise across film, television, and gaming.
