Daedalic Entertainment, the studio behind the long-delayed and poorly-reviewed The Lord of the Rings: Gollum, is shutting down its internal development arm.
In a new article by Games Wirtschaft, the outlet reported that Daedalic Entertainment will now focus on game publishing, sales, and marketing. The studio sent out a statement to Games Wirtschaft, stating that it was a "difficult turning point" for the company.
Daedalic Entertainment also told the studio that it is laying off people, with 25 individuals impacted by the layoffs. "We value each and every member of our team, and it is important to us that the transition goes as smoothly as possible," a Daedalic spokesperson told Games Wirtschaft. "Therefore, we will support our former employees in finding new opportunities within our network."
Additionally, the German-based game studio announced that it had halted the development of another Lord of the Rings game it was working on internally. The game has been in development since 2022 and was under the codename "It's Magic," with it supposedly launching next year.
Despite the studio no longer working on new games internally, it is still committed to improving The Lord of the Rings: Gollum, with another patch currently being worked on, according to Games Wirtschaft. A Nintendo Switch version is also in development and is aiming to release later this year.