Daedalic Entertainment, developers of the upcoming Lord of the Rings: Gollum game, may be facing some financial difficulties due to a recent flop.

It’s starting to look as if the developers of The Lord of the Rings: Gollum may be facing some financial hardships which could in turn impact the direction of their upcoming game. Daedalic Entertainment, a Germany-based game company which acts as both a developer and publisher, is best known for their plethora of point-and-click adventure titles, including the Deponia and The Chronicles of Shakespeare series, but recent losses may have put a damper on their projects moving forward.

Announced earlier last year, The Lord of the Rings: Gollum is said to be pursuing a different angle from the other games in the fantasy franchise, a statement made clearly evident by the new game’s title alone. No other Lord of the Rings video game has focused on Gollum as a character, instead choosing to center themselves around previously established heroes like Frodo and Aragorn or create their own, such as in the Middle-Earth: Shadow of War titles. Excitement from both fans and the game’s development team appeared to be high, but unfortunately things may now have to take a few steps backwards.

According to a recent report by WCCFTech, Daedalic Entertainment recently released a game called A Year of Rain on Steam Early Access, and it has not sold very well at all, with less than 5,000 units purchased over the past three months. Sales of A Year of Rain were so low, in fact, Daedalic Entertainment announced that any ongoing developments for the game would be placed on hold. Even more troubling, the company’s 51% owner, Bastei Lübbe, released a statement saying “the previous business model is proving to be unsustainable” and adding that they “will therefore now examine all options for a re-positioning of Daedalic Entertainment and its business model.”

It’s unclear at the moment how these financial losses will affect The Lord of the Rings: Gollum video game in the long run, but the failure of A Year of Rain has surely put a large amount of stress on Daedalic Entertainment, and WCCFTech also reports that “the available borrowed capital for further investments is almost exhausted.” Whether or not the company needs further capital to complete The Lord of the Rings: Gollum is unknown, but it is extremely likely considering the present costs of publishing and marketing video games.

Hopefully, Daedalic Entertainment will be able to give The Lord of the Rings: Gollum game the quality treatment they have been working towards. Small tidbits of information which have been revealed about the title, such as the focus on Gollum’s relationship with Smeagol, promise an experience unlike anything fans of The Lord of the Rings have been able to enjoy yet, and many are surely anticipating its release. For now, players can only keep their fingers crossed and hope excitement for The Lord of the Rings: Gollum, and its subsequent sales figures, are enough to keep Daedalic Entertainment alive.