The Lord of the Rings: Gollum, easily one of the most poorly received games of the year, will be the final game developed by Daedalic Entertainment. In a statement released today, June 30, the Hamburg-based company has confirmed layoffs related to the shuttering and cancelation of upcoming projects.

As reported by German publication GamesWirtschaft, Daedalic Entertainment will focus solely on game publishing moving forward. Of the over 90 employees in the company, 25 are being let go as part of a restructuring effort.

“We value every single member of our team very much, and it is important to us that the transition goes as smoothly as possible,” Daedalic management has stated. “Therefore, we will support our former employees in finding new opportunities within our network.”

The studio had also been developing another game set in The Lord of the Rings, which has now been canceled as well. The move is being described as a “difficult turning point” as well as “a new beginning” by the company. Before Gollum, the Daedalic developed the Deponia, Edna & Harvey, and Blackguards series, among other smaller titles over the years.

The studio’s first crack at a AAA project was The Lord of the Rings: Gollum, an action-adventure game set in J. R. R. Tolkien’s fantasy epic. However, the drastic shift from its usual point-and-click adventure games didn’t turn out so well. Gollum’s launch was panned by critics and players alike for its day-one bugs, poor visuals, and lackluster gameplay.

“We acknowledge and deeply regret that the game did not meet the expectations we set for ourselves or for our dedicated community,” the company said regarding Gollum’s poorly received launch in May. “Please accept our sincere apologies for any disappointment this may have caused.”

While game development is now behind it, Daedalic Entertainment will continue its publishing division. As such, upcoming and ongoing projects by third-party partners like Surviving Deponia and Inkulinati will continue to be supported.


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