Guillermo Del Toro announced that he will not direct the two films based on The Hobbit, due to scheduling delays.  Del Toro will continue to work on the screenplays for the films, according to the announcement on Theonering.com.

“In light of ongoing delays in the setting of a start date for filming ‘The Hobbit,’” Del Toro said, “I am faced with the hardest decision of my life.  After nearly two years of living, breathing and designing a world as rich as Tolkien’s Middle Earth, I must, with great regret, take leave from helming these wonderful pictures…. “The blessings have been plenty, but the mounting pressures of conflicting schedules have overwhelmed the time slot originally allocated for the project.”

The start of shooting for the first film was delayed from late 2009 until this year (see “Hobbit Filming Delayed”), and there are some questions about MGM’s role in financing the picture due to its heavy debt load, despite assurances last year that it could handle its share (see “MGM Snags ‘Hobbit’ Cash”).

The whole process seems to be stretching out.  Executive Producer and co-writer Peter Jackson said that Del Toro couldn’t stay in New Zealand for the six years it would take to make both films; originally the plan was for it to take four years (see “Del Toro Hobbit Deal”).

Despite the longer production schedule, Jackson is still claiming that the first film will be released on schedule (see “Hobbit Release Set for December 2012”).  “We do not expect any delay or disruption to ongoing pre-production work,” Jackson said.