Finally, Vivendi announced an agreement with Turbine in 2003 to produce Middle-earth Online (at that time expected to be released in 2004). Vivendi Universal Games, the parent company of Sierra, secured eight-year rights to produce computer and video games based on the The Lord of the Rings books in 2001. Sierra continued to confirm development on the MMORPG was progressing, but did not release any development details over the next few years. Sierra had financial troubles in 1999 and replaced the staff working on the game. The most debated design idea was the planned use of " permadeath": When a player character would die in the game, that character would be permanently dead (most MMORPGs resurrect a dead character with minor penalties). This caused some excitement among fans, who were awaiting The Lord of the Rings movies and was also slightly controversial for a few design decisions. Sierra On-Line first announced the development of a licensed, Middle-earth MMORPG in 1998.
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