The world of Middle Earth, as immortalized by J.R.R.
Tolkien in his epic works "The Lord of the Rings" and "The Hobbit," has recently gotten
a flurry of new interest from various multimedia corporations.
In a surprising reveal, Embracer Group, the renowned Swedish gaming conglomerate, announced
that it purchased the rights to these esteemed titles for a seemingly reasonable figure of
$395 million.
This acquisition, which was secured from Middle-Earth Enterprises in the Saul Zaentz Company, includes
a broad spectrum of rights spanning films, video games, board games, merchandising, theme
parks, and stage productions.
While many Tolkien fans are eager to see what might come from this acquisition, this news
has me feeling quite nervous.
In this video I’d like to cover what was recently revealed in an article from Variety
about this purchase and why I’m now more worried about the future prospects of Middle
Earth based content.
On the surface, at $395 million, it appears as though Embracer secured an advantageous
deal as their purchase fell significantly short of expectations.
Initial projections estimated the worth of these rights to be as high as $2 billion.
By comparison, Amazon is rumored to have spent a whopping $250 million merely for the rights
to produce their TV series "The Rings of Power."
This didn’t even include the rights to adapt many of Tolkien's writings that cover the
events of the second age, the timeframe in which the Amazon show is set.
This sum paid by Amazon was secured directly from the Tolkien estate and was only for this
single aspect of the franchise.
That being said, although it appears that Embracer group acquired their new rights at
a bargain, the company’s recent cost-cutting measures, including layoffs, games studio
closures, consolidations, and restructures, have proven to escalate my concerns.
Embracer has admitted that their acquisition of Middle-Earth Enterprises has significantly
impacted their cash flow, necessitating these budgetary adjustments.
Now that they’re holding the keys to the Tolkien universe, the common fear is that
Embracer group may find it tempting to rush to market, capitalizing on the broad existing
fan base's anticipation.
To this point, amid their current restructuring efforts Embracer's Interim C.O.O.
recently said quote “We know we need to be exploiting Lord of the Rings in a very
significant fashion and turning it into one of the biggest gaming franchises in the world.
And that’s obviously something that we are going to be doing.
That’s a much better use of resources than some of the other projects that some of our
teams have been working on.”
Although this may simply be a case of unfortunate or clumsy verbiage, these comments stand out
to me as a potential red flag highlighting a looming risk that the company, in pursuit
of immediate returns, may succumb to the pressure to hastily create new content to capitalize
on the rich legacy and name recognition that Tolkien’s legendarium garners.
The 'Lord of the Rings' franchise has long been cherished for its in-depth storytelling,
intricate world-building, and compelling characters.
Therefore, any attempts to compromise these hallmarks to exploit the IP in the pursuit
of quick profits could severely jeopardize Embracer's standing and the goodwill of the
customer.
The effect of this approach was made perfectly evident by the immense fan backlash against
Amazon’s Rings of Power series which was a wild mishandling and what many, including
myself, consider to be a contrived bastardization of Tolkien’s second age stories.
It’s apparent that recent acquisitions by Embracer Group have overburdened the company
more than initially anticipated.
Their CEO and co-founder revealed the need for significant savings measures, citing the
impact of several recent purchases.
These aren't limited to Middle-Earth Enterprises but also extend to Dark Horse, a well-known
comics publisher, Anime Limited, a notable player in the anime industry, and rights to
the famed "Tomb Raider," along with a number of video game studios.
These acquisitions, all made within a relatively short span, have strained the company's resources.
All these elements combine to paint a picture of a company that may have overreached and
bitten off more than they can chew with these aggressive new deals.
Embracer has also hinted that they have plans to release "several world-class products"
in the next two decades, as well as adaptations in other media.
Perhaps their most interesting announcement involved their signing of a multi-year agreement
with New Line Cinema and Warner Bros. Pictures to create "multiple feature films” based
on Tolkien’s works.
The biggest question that arises in my mind from this particular development is: What
will these promised feature films look like?
Will they align more closely with Peter Jackson's 'Lord of the Rings' trilogy, which gained
worldwide acclaim for its stunning interpretation and attempts to adhere to the spirit of Tolkien’s
work?
Or, should fans brace themselves for a mirror of Jackson's 'Hobbit' films, which were marred
by awkward, over-the-top scenes, bloated original storylines and cringe-inducing characters
that diluted the richness of the source material?
These questions, rooted in the history of Tolkien adaptations at Warner Brothers, lie
at the heart of my biggest fears.
In the way of other media, Embracer also recently announced their plans to generate royalties
from the launch of five new Tolkien-based games developed by external partners in the
next two years.
These games include EA's mobile role-playing game, The Lord of the Rings: Heroes of Middle-earth,
and The Lord of the Rings: Return to Moria, a survival and crafting game.
Also in the works is a game from Take-Two in cooperation with Weta Workshop, known for
its work on the Lord of the Rings films.
However, this planned roadmap of games appears to be off to a terrible start with the release
of the infamously bad The Lord of the Rings: Gollum by Daedalic Entertainment.
Marred by severe technical issues, bafflingly poor level design and bizarre story elements,
the game fell far short of fan expectations.
Daedalic is allegedly working on yet another project for Embracer in the form of a 3D action-adventure
game set within the Tolkien universe.
Needless to say, however, the apparent failure of The Lord of the Rings: Gollum has many
fans feeling pessimistic about further Middle Earth offerings from Daedalic.
In addition to these titles, Embracer also recently announced an agreement with Amazon
Games to develop and publish a new massively multiplayer online (MMO) game based on “The
Lord of the Rings”.
Ultimately, while the numbers revealed in Embracer Group’s purchase of the 'Lord of
the Rings' rights could represent a cost-effective business venture, the acquisition comes with
a significant responsibility.
While they certainly are feeling the pressure to exploit this IP for its immense value,
it’s also vital for the company to balance the need for immediate returns with the commitment
to honor and extend Tolkien's legacy.
With this purchase, Embracer Group has embarked on an ambitious journey, but they must tread
carefully.
In the wise words of Bilbo Baggins, “It’s a dangerous business, Frodo, going out of
your door.
You step into the Road, and if you don’t keep your feet, there is
no knowing where you might be swept off to.”
~J.R.R.
Tolkien - The Fellowship of the Ring
If Embracer group wishes to heed Tolkien’s warning, they must proceed with mindful vigilance
on this new road, seeking to swiftly correct any missteps lest they risk being swept off
into a realm of disillusion and disappointment.
As they navigate this path, one can only hope that they keep their feet firmly planted with
a focus on preserving the spirit and rich mythos of Middle Earth that has made Tolkien’s
writings so timelessly captivating.
But I’m curious to know what you think of the recent reports, comments and figures surrounding
Embracer’s purchase of the rights to Tolkien’s work.
Do you share my concerns or are you excited about what this could mean for the future
of Middle Earth-based content?
Let me know your thoughts in the comments section below.
I hope you enjoyed this video.
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Thank you all so much for your support and as always have a very nerdy day.