The Lord of the Rings: Gollum PS5 PS4

Daedalic Entertainment will be shutting down its in-house development efforts in the wake of The Lord of the Rings: Gollum's rough launch.

The German company, which has been both developing and publishing games since 2007, will be focusing solely on the latter half of its business moving forward. Internal projects — including another Lord of the Rings game — will be stopped, and the restructuring of the company will unfortunately lead to layoffs. According to a report from German outlet GamesWirtschaft, 25 employees will be affected, though Daedalic says it'll "support our former employees in finding new opportunities within our network".

The company has a decent history when it comes to its published works, which include Shadow Tactics: Blades of the Shogun, AER: Memories of Old, and many others. While it's a shame to see Daedalic scaling back in this way, hopefully refocusing will enable it to bounce back. A statement from the publisher describes the situation as a "difficult turning point", but equally a "new beginning in the long history of Daedalic Entertainment".

[source gameswirtschaft.de, via twitter.com]