NetEase plans to cease funding for Nagoshi Studio, the Japanese game developer founded by Yakuza series creator Toshihiro Nagoshi, beginning in May 2026. The decision, reported Friday, March 7th, impacts the development of the studio’s debut title, Gang of Dragon, and casts doubt on its eventual release.
According to sources familiar with the matter, NetEase determined that an additional ¥7 billion (approximately $44.4 million) would be required to complete Gang of Dragon. The company informed Nagoshi Studio employees of its intention to cut funding, potentially leading to the studio’s closure. Nagoshi is reportedly seeking alternative investors to secure the project’s future, but has so far been unsuccessful.
Gang of Dragon, revealed at The Game Awards in December 2025, stars South Korean-American actor Ma Dong-seok. The action game was described as being “deep into development” at the time of its announcement. Nagoshi Studio was established in 2022 after Nagoshi departed Ryu Ga Gotoku Studio, the team behind the Yakuza (now Like a Dragon) franchise.
NetEase’s decision to withdraw funding is part of a broader trend of scaling back international game development investments. The Chinese gaming corporation has recently closed several studios, including Fantastic Pixel Castle and Bad Brain Games, and severed ties with Vancouver-based Worlds Untold and Seattle-based Jar of Sparks. Ouka Studio, the Tokyo-based developer of Visions of Mana, was too closed in 2024.
The funding cut comes less than four months after Gang of Dragon’s initial reveal. Nagoshi had previously stated his commitment to delivering a game that would satisfy fans of his previous work. Neither NetEase nor Nagoshi Studio have publicly responded to requests for comment regarding the funding withdrawal or the future of Gang of Dragon.
