The consequences of Gollum's failure: German company Daedalic Entertainment stops developing games and closes the studio

The consequences of the failure of The Lord of the Rings: Gollum have not been long in coming. Daedalic Entertainment has announced the closure of its game studio.

Here's What We Know

Shortly after the release of the last years' most disappointing game The Lord of the Rings: Gollum, the gamers and journalists were genuinely surprised with the news that Daedalic Entertainment was entrusted with the development of another game in the Lord of the Rings universe code-named It's Magic. What's more, the German government has allocated €2m for the development of this game! Luckily for the FRG, the developers didn't have time to spend the money because the studio is closing.

Daedalic Entertainment has cancelled all development work, laid off a quarter of the staff, reorganized and will now focus solely on publishing third-party games.

Perhaps that's for the best. Gollum has seriously damaged the reputation of once good developers of interesting quests.

Source: Games Wirtschaft