Lord of the Rings: Gollum dev Daedalic is done making games

German developer Daedalic Entertainment has reportedly ended internal game development. In a translated post from Games Wirtschaft, the studio says it will focus its business on game publishing, sales, and marketing. 

In a statement provided to the outlet, the studio acknowledged it's facing a "difficult turning point" after its most recent game, The Lord of the Rings: Gollum. The adventure game released this past May and was widely panned by players and audiences alike. 

The negative reception for the game was so large that a day after it came out, the development team apologized for its release state. 

"We acknowledge and regret that the game did not meet the expectations we set for ourselves," wrote Daedalic in late May. "Please accept our sincere apologies for any disappointment this may have caused."

What's next for Daedalic and The Lord of the Rings?

Game Wirtschaft further alleged that 25 Daedalic employees (out of a staff reportedly over 90 people) were recently laid off as a result of this restructuring. 

Another Lord of the Rings game that was in development since mid-2022 has been canceled entirely. The unannounced project was reportedly planned as a follow-up to Gollum.

At time of writing, Daedalic is still committed to improving Gollum via patches and updates.