Amazon's Lord of the Rings MMO, which was originally slated to release next year, has been cancelled after contract negotiations between the global retail conglomerate and Tencent, the owners of Athlon Games, who were developing the title under contract, broke down.

Athlon Games were tasked with creating the game but were subsequently acquired by Tencent. "We have been unable to secure terms to proceed with this title at this time," an Amazon spokesperson said. "We love the Lord of the Rings IP, and are disappointed that we won’t be bringing this game to customers.” 

Amazon's staff who were also working on the project are being redeployed to other projects. It's interesting that Amazon and Tencent appear to have found themselves in something of a dispute here - although both corporations seem to be quite keen on having control over the projects they are involved in, which may have lead to the deal falling through.

Amazon Game Studios, despite being formed over 7 years ago, has never released a title, with other games such as Breakaway and Crucible also being cancelled over the years. The studio is planning to release its first game, New World, this August, though.