[7][8][9] In November 2016, Daedalic laid off twelve of its roughly 150 employees, primarily from the production and marketing departments, and opted not to renew several temporary contracts.

[14] In August 2018, as Bastei Lübbe faced severe financial issues, the company started considering to sell their 51% stake in Daedalic.

[15] In early 2021, the Düsseldorf and Munich studios entered liquidation; the former had been inactive since after creative director Andreas Suika left in August 2019 for Epic Games, while the latter was emptied in late 2020 with all employees rehired by other Munich-based developers.

[16] Nacon announced its intent to acquire Daedalic in February 2022 through purchase of all controlling shares of the company for an estimated $60 million.

The closure came as a result of poor reception and performance of the studio's final internally developed game, The Lord of the Rings: Gollum.