Publisher Daedalic Entertainment has revealed that it will no longer be developing games at its internal studio following the release of The Lord of the Rings: Gollum.
Speaking with the German outlet Games Wirtshcaft, Daedalic confirmed that it’s “giving up internal game development.” A statement provided to the outlet framed this move as a “difficult turning point” that is being viewed as “a new beginning in the long history of Daedalic Entertainment”.
While the development arm is closing, Daedalic will continue on as a publisher, however, layoffs are still a reality. When asked about what impact this would have on staff, a Daedelic representative confirmed that 25 of the 90 employees would be affected. “We value each and every member of our team, 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.”
The Hamburg-based development studio’s most recent title, The Lord of the Rings: Gollum, was met with widespread ire and disappointment, with the game currently sitting on a 34 on Metacritic. While the studio had previously announced that another LotR title was in development, with work on the game starting in 2022, that project has now been cancelled due to this restructuring.
In our review of Gollum, we said that “With dated design, LotR: Gollum is a slow and tedious slog through Middle Earth that even the staunchest LotR fans will struggle to enjoy.” We gave the game a 3.
Have you played LotR: Gollum? Were you hoping to see Daedalic have another crack at a Lord of the Rings game? Let us know in the comments or on our social media.
Shoutoutsa to Games Wirstschaft.

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