'Lord of the Rings: Gollum' developer Daedalic Entertainment has shut its doors.

The doomed game - which is set in the fictional world of Middle-earth created by J. R. R. Tolkien - was expected to be released in 2021 but was pushed back to 2022 before being delayed again.

However, its eventual release in May was met with substantial criticism from gamers and critics alike, with many feeling it felt unfinished.

Now, the German developer and publishing firm has announced the closure of its developing department and has laid off several staff members.

There will be a final patch and a planned follow-up has been axed.

In a statement issued to Polygon after GamesWirtschaft first reported the news, it said: "Daedalic Entertainment has made the decision to close its development department, with full focus now on our publishing business. Eight promising releases will be launching in this financial year alone.

"Even though The Lord of the Rings: Gollum did not live up to the expectations we had for the game, we are very grateful for the opportunity and the learning experience it brought us.

"Currently, we are working on another patch for The Lord of the Rings: Gollum. A follow-up project in The Lord of the Rings universe that has already been started will be discontinued."