The Lord of the Rings: Gollum Daedalic Entertainment

Daedalic Entertainment Halting All Development, Laying Off 25 Employees

Daedalic Entertainment is pausing its game development arm, per a Games Wirtschaft report translated by DeepL. This news comes just one month after the studio launched the dismally received The Lord of the Rings: Gollum leaving the studio to apologize for the state of the licensed game at launch.

In a statement to Games Wirtschaft, Daedlic said the situation was a “difficult turning point” for the studio, and it would now focus on publishing and marketing.

This decision to move away from development comes with several layoffs, estimated to be 25 individuals impacted by the strategy shift. “We value each and every member of our team very much, and it is important to us that the transition goes as smoothly as possible,” Daedalic said. “Therefore, we will support our former employees in finding new opportunities within our network.”

Surprisingly, Daedalic Entertainment was working on a second The Lord of the Rings project the studio began halfway into 2022. That project has now been shelved after it had received €2 million in funding from the German government. The untitled project, It’s Magic, was described as “A story told from the perspective of a character that has never been told before. The player discovers completely new regions and influences the events of the world within the framework of his role and abilities. In his own way, he tries to influence the course of events and change the world’s fate.”

Nacon acquired Daedalic in February of last year in a deal worth between €32 million and €53 million.