Daedalic Entertainment has announced that it will close its development studio and shift its focus to the publishing division.
News of the reorganization was first reported by German games industry website GamesWirtschaft, which said the Hamburg development studio would be closed, affecting 25 of its 90-plus employees.
Daedalic told the site it will support its former employees by finding new opportunities within its network.
As part of the reorganization, a game based on the Lord of the Rings game was canceled. Of the titles that have been in development since mid-2022 and scheduled for release in late 2024, Daedalic has never officially announced a title codenamed It’s Magic.
The game features a lush world “full of mythical creatures and magic,” according to a database entry from the German Economy Ministry (BMWK), which coordinates federal funding for computer games. Like the developer’s less popular Lord of the Rings: Gollum, the codename “It’s Magic” will tell “never-before-told” stories from the characters’ perspectives. The Lord of the Rings game will also feature “entirely new areas” where the fate of the game world will be affected by player decisions.
As far as the elephant in the room is concerned, Daedalic addressed The Lord of the Rings: Gollum in a statement to Polygon, saying that while the game did not “meet expectations,” the company is “grateful for the opportunity” and the We bring learning experiences. “
Currently, Gollum’s development team is working on another patch for the game. Daedalic also said it is launching “eight promising releases” that will be released during the company’s current fiscal year.
