the Daedalic Entertainmenta Hamburg-based video game development and publishing company, confirmed this Close up of the development studio, laying off 25 of its more than 90 employees. The company will continue to act as a publisher only and will outsource the development of its future projects to external partners.
The closure of Daedalic’s in-house development studio is a direct result of the poor reception and sales of its latest game, The Lord of the Rings: Gollum. The title was released in May 2023 and received negative reviews from experts and gamers alike, who pointed out its technical, mechanics, story, and graphics problems. Although the game belongs to the beloved JRR Tolkien universe, its sales have not lived up to expectations.
It is worth mentioning that The second The Lord of the Rings game that the company was preparing for has been cancelled.
For the record, Daedalic Entertainment was founded in 2007 by Carsten Fichtelmann and Jan Müller-Michaelis and has gained notoriety for award-winning adventure games like Edna & Harvey, The Whispered World, A New Beginning, and Deponia. The company has also published games from other developers, such as Shadow Tactics: Follett’s The Pillars of the Earth and State of Mind.
In 2014, Daedalic Entertainment was acquired by German publishing company Bastei Lübbe, which later ran into financial difficulties and sold its stake to Nacon in 2022. Daedalic also had two subsidiary studios in Düsseldorf and Munich, which closed in 2021.
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