May 15 (Reuters) - Amazon.com Inc and Swedish game developer Embracer Group have agreed to develop and publish a massively multiplayer online (MMO) game based on fantasy series "The Lord of the Rings", the companies said on Monday.

The game, which is in the early stages of development, will be set in Middle-earth, featuring stories of "The Hobbit" and "The Lord of the Rings" literary trilogy written by J.R.R. Tolkien, according to the companies.

The popularity for MMO titles that support a large number of players simultaneously surged during the COVID-19 pandemic, and has stayed strong.

Video game publisher Electronic Arts also launched its mobile game "The Lord of the Rings: Heroes of Middle-earth" earlier this month.

Amazon and Embracer said on Monday they will publish the game globally for PCs and consoles, and said that additional details, including the launch timing, will be shared at a later date.

Earlier in 2021, Amazon had canceled an online role-playing game based on "The Lord of the Rings", which was announced in 2019. (Reporting by Tiyashi Datta in Bengaluru; Editing by Shinjini Ganguli)