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That's because Peter Jackson realized the future of special effects revenue, and wanted to give his New Zealand outfit a kickstart. It's the same studio that made all the costumes and animatronics for LOTR: their digital wing (Wetaworks). They could have produced the same caliber of work for The Hobbit films, but they wouldn't advance or develop their CGI game. He also didn't have time to properly reset and plan the films after Del Toro took off:100% fucking agree!!
Awesome
SHITTY!!!
The Hobbit movies were awful, and now we know why