In a recent turn of events, Daedalic Entertainment, the renowned German developer behind The Lord of the Rings: Gollum, has announced significant changes following the lukewarm reception of their game earlier this year.
As a result, the studio has decided to cancel the development of their next Lord of the Rings game and has chosen to discontinue game production altogether. Going forward, Daedalic Entertainment will transition into a publisher role, with a promising lineup of eight releases planned for the current financial year.
Daedalic Entertainment expressed gratitude for the opportunity and the valuable learning experience that The Lord of the Rings: Gollum brought them. However, the game failed to meet their expectations, prompting the studio to reevaluate its approach to game development.
While it remains undisclosed whether the canceled project was a direct sequel to Gollum or a standalone game exploring a different facet of Middle-earth, Daedalic management had previously expressed interest in venturing into uncharted territories within the beloved fantasy universe.
The German studio had secured funding from Germany’s Federal Ministry of Economic Affairs  and Climate Protection, and their plans for the transition to a publishing-only role were communicated to the government some time ago.
Regrettably, these changes have resulted in a downsizing of the Daedalic team, although the exact number of affected positions has not been specified. The studio has assured its departing developers of support in finding new opportunities within their extensive network. It is worth noting that French company Nacon owns Daedalic Entertainmentacon.
Daedalic Entertainment acknowledged that this transformation represents a challenging but necessary break, signaling a new chapter in their longstanding history. Having been founded in 2007, Daedalic Entertainment has gained recognition for its point-and-click titles, most notably the Deponia series.
While Daedalic Entertainment may no longer be actively involved in game development, they are committed to improving The Lord of the Rings: Gollum with at least one upcoming patch to enhance the overall gameplay experience.
Although the cancellation of Daedalic’s next Lord of the Rings game is undoubtedly disappointing for fans, the Middle-earth universe is still set to see the release of other highly anticipated titles. These include an untitled game from Weta, LOTR: Return to Moria, and a Lord of the Rings MMO developed by Amazon.
As the gaming industry continues to evolve, Daedalic Entertainment’s strategic shift emphasizes the studio’s determination to adapt and explore new avenues in interactive entertainment.