Daedalic Entertainment Shifts Focus to Publishing, Ends Internal Game Development

Daedalic Entertainment, the developer behind Lord of the Rings: Gollum, has reportedly laid off 25 staff members and will no longer internally develop video games. The company will shift its focus to publishing. Work on a sequel to Lord of the Rings: Gollum has been halted. The game received negative reviews and low sales upon its release. Daedalic's success as a developer came from point-and-click adventure games, but recent attempts to branch out have had mixed results. The survival spin-off Surviving Deponia is still in development by an external studio, with Daedalic publishing.