Roughly 25 employees have been laid off as a result.

Daedalic Entertainment has shut down its internal game development at the Hamburg-based studio and has laid off 25 employees. Daedalic will now focus purely on publishing third-party titles for the foreseeable future. As it stands, Daedalic currently has eight titles it will publish over the next fiscal year.

Daedalic Entertainment was best known for developing a variety of point-and-click adventure titles before developing and releasing The Lord of the Rings: Gollum. Another Lord of the Rings game the studio was working on has also been canceled.

Daedalic says, via German website Games Wirtschaft, that they will "support our former employees in finding new opportunities within our network." Prior to 25 employees being laid off, the development team consisted of roughly 90 employees.

A month ago, Daedalic issued an apology for the state of the Gollum game. At that time, they said they would continue to work on patches for Gollum. Their most recent comments reaffirm those earlier remarks about continuing to work on additional patches for the Gollum game.

If you feel like punishing yourself, The Lord of the Rings: Gollum is currently on sale for 30% off as part of the Steam Summer Sale.