Private Division - the Take-Two Interactive subsidiary behind The Outer Worlds and Hades - just confirmed that it's working with Weta Workshop on a "new game set in the literary Middle-Earth universe of J.R.R Tolkein."
Weta Workshop is a New Zealand-based company that specializes in doing special effects and props. The studio made a name for itself after working on all three of Peter Jackson's The Lord of the Rings and The Hobbit movies as well as 2005's King Kong reboot, among several others.
Most recently, Weta Workshop helped bring Amazon Prime's The Lord of the Rings: The Rings of Power to life.
According to the announcement, Weta will lead the development of the untitled Middle-Earth game. Weta established a game studio in 2014.
This isn't the first time that we've heard about Weta's new game. Last year, Weta was seen hiring for a "Major Worldwide IP". It's safe to say that the studio has since found its game producer and more for the game.