Amazon Game Studios has cancelled an upcoming Lord of the Rings title over a contractual dispute between itself and Tencent.
The news was reported by Bloomberg and confirmed by Amazon, which explained it had been working on the project alongside Chinese company Leyou Technologies Holdings Ltd before it was purchased by Tencent in December 2020.
Following that deal, Amazon and Tencent were reportedly unable to resolve an issue caused by contract negotiations, resulting in the project being scrapped.
Although the specifics of the dispute are unclear, an Amazon spokesperson told Bloomberg it was "unable to secure terms to proceed with this title at this time."
"We love the Lord of the Rings IP, and are disappointed that we won’t be bringing this game to customers," added the company. The development team responsible for the Lord of the Rings title has now been moved on to other projects.
The news comes a few months after Bloomberg published a report indicating Amazon has struggled to make its foray into the games industry work because of mismanagement at the highest level and an undercurrent of workplace toxicity.
Since that report was published, long-time Amazon chief exec Jeff Bezos has announce his depature. His replacement, Andy Jassy, has expressed support for Amazon Games Studios and said they're determined to see the company's video game business succeed.
"Some businesses take off in the first year, and others take many years. Though we haven’t consistently succeeded yet in Amazon Game Studios, I believe we will if we hang in there," wrote Jassy in an email obtained by Bloomberg in February.
"Being successful right away is obviously less stressful, but when it takes longer, it’s often sweeter. I believe this team will get there if we stay focused on what matters most."