Here is a bunch of info from various sources:

RPGamer.com:

quote

Today, publisher/developer Electronic Arts announced that it had acquired the rights to develop a series of games based on J.R.R. Tolkien's renowned fantasy trilogy, The Lord of the Rings. Up until this point the company has only been allowed to develop titles based on Peter Jackson's theatrical interpretation of said trilogy. With its newly expanded rights, EA hopes to portray scenarios, events, characters, and other aspects of the story that have thus far remained untapped. Two games have been put into production with the acquisition of the aforementioned rights: The Lord of the Rings: The Battle for Middle Earth II, a PC real-time strategy game, and The Lord of the Rings Tactics (working title), a PSP tactical RPG.

The latter of those titles will, of course, transpire in the Middle-Earth universe, where players will be able to control either the Fellowship or the forces of Sauron. EA is aiming to provide a decent amount of character customization, a large number of items, and a deep system of upgrades and skills. Battle commands will involve protecting heroes, seizing high ground, and setting ambushes and traps. Additionally, The Lord of the Rings Tactics will make use of the PSP's WiFi capabilities, which will enable players to confront up to four other living opponents and their customized heroes. A simultaneous turn system will ensure that battles don't suffer from too much down time.

The Lord of the Rings Tactics has not yet been tagged with a release of any kind. Stay tuned to RPGamer for more information as it is revealed.

quote

Electronic Arts has announced that they will be releasing an original PSP title called Lord of the Rings: Tactics. This title will be a hybrid role playing/tactical strategy title in the same vein as Lord of the Rings: The Third Age. This announcement comes alongside the news of EA's acquisition of the rights for the original Lord of the Rings novels by J.R.R. Tolkien.

Gameplay details regarding Lord of the Rings: Tactics were scant, although EA did state that players will, "guard their heroes, seize high ground, set ambushes and trap enemies while fighting battles across famous locations of the books and films to determine the future of Middle-earth." PSP owners will be able to compete in four player brawls with the system's built in Wi-Fi. Also mentioned was a simultaneous turn system, although it is unclear whether it will be similar to the system in Vandal Hearts II. Lord of the Rings: Tactics has not yet been given a release date.

What sort of game is this?
How does the battle system work?

quote Garkaz

What sort of game is this?
How does the battle system work?

its the same type of gameplay as final fantasy tactics.

Thought people might want to know, EA has shipped the game! So we'll see it in stores shortly

so this game is basically like LOTR:the third age but on PSP

Uhmmm WAY off! This is the first LOTR Game released AFTER EA scored the rights to the books (previously they only had the rights to the movies) to "celebrate" EA is releasing 2 titles: LoTR Tactics on the PSP and Battle for Middle Earth II on PC. The battle system is a simultaneous turn based system (ie. You have a movement phase and select where you want to move, you & enemy units move, combat phase, you & enemy attack). I hope that clears a few things up... I'm up to 86% playing for the Host of Mordor side and so far 22 Levels.... It is in NO way similar to The Third Age (aside from LoTR characters) and has a lot more battles in it (ie. Shelob battle, Balrog battle and Marmaduks (SP?)).

Is it like Fire Emblem, then? I'm not a big FF man myself, so I couldn't tell you how FF:Tactics plays out. But if I'm thinking of the right game, FF: Tactics is not too dissimilar from the FE series. And I loved FE, so maybe I'll like LOTRTactics?

Um, FuzzyPredator.
U said Marmaduks, it's Mumakil you're talking about, isint it?