Daedalic Entertainment is undergoing restructuring following the failure of The Lord of the Rings: Gollum

The fate of the German publisher Daedalic Entertainment, the developer of the failed game The Lord of the Rings: Gollum, takes an unexpected turn. Due to the catastrophic failure of the game and a number of other unsuccessful projects, the company was forced to undertake a massive restructuring and reduce the staff by 25 people.

Most of the laid-off employees worked at Daedalic Entertainment's Hamburg office. But these are not all changes. The company also decided to abandon the development of its own games, switching to the publication and promotion of third-party projects.

Among other recent difficulties for Daedalic is the cancellation of another game in the Lord of the Rings universe. For this project, the company even managed to receive a subsidy from the German government in the amount of 2.03 million euros.

According to Daedalic Entertainment, the development of The Lord of the Rings: Gollum has progressed too slowly, requiring more resources than expected. This, in turn, undermined the company's financial health, which was already at risk due to a series of bad games in the past years.

Looking ahead, Daedalic Entertainment's decision may seem sad, but it's a strategic move to survive in a highly competitive gaming industry. The company seems to be banking on its skills in publishing and promoting games, instead of risky developing its own projects. Whether this strategy will succeed remains an open question.