While the game was in development, Chinese tech giant Tencent stepped into the picture by acquiring Leyou in December 2020. This then led to a dispute between Amazon and Tencent. Ultimately, both companies could not come to an agreement, and the LotR MMO was cancelled as a result. An Amazon spokesperson confirmed the cancellation and the circumstances that led to it.
Amazon is having a rough time entering the gaming market. Between this and the cancellation of Crucible, the company now only has its other MMO, New World, left in development. It currently has a 31 August release date, having been delayed from the initial May 2020 window. Beyond that, it has another ongoing venture into gaming via the Luna streaming service.