The Lord of the Rings: Gollum
Image: Daedalic Entertainment

After the troubled launch of The Lord of the Rings: Gollum in May, it's been revealed Daedalic Entertainment is now shutting down its in-house development to focus on publishing.

This "difficult turning point", also described as a "new beginning" for the German company, will see the publisher halt its other Lord of the Rings game. It will also be restructuring - with 25 employees to be laid off. The company will help these same individuals find new opportunities within its network.

Here's what Daedalic had to say about this in a statement to Games Wirtschaft::

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

At launch, Daedalic apologised to Gollum players for the "underwhelming experience" and made a promise to rectify the situation by patching the game following some pretty dreadful reviews at launch.

Daedalic Entertainment started out in 2007, and is known for its work on series' such as the graphic adventure Deponia and more recently publishing the Xbox Game Pass release, Inkulinati. The upcoming Surviving Deponia won't be directly affected by Daedalic's news, as the company is only a co-developer on that title.

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