In the film The Hobbit : The Desolation of Smaug Bilbo is terrified as his help in releasing Smaug leads to Laketown 's destruction .
This fails however and Smaug stumbles out of the mountain and flies off to destroy Laketown as Bilbo watches in horror at what they have unleashed , saying to himself , `` What have we done ? ``
The Hobbit-COLON- The Desolation of Smaug