NetEase Cuts Funding for Nagoshi Studio
Chinese gaming giant NetEase is halting financial support for Toshihiro Nagoshi’s studio, putting the future of its debut game Gang of Dragon in jeopardy. This decision, confirmed by Bloomberg after interviews with studio employees, marks a significant setback for the team behind the Yakuza franchise.
The Funding Cut: What Happened?
NetEase, which initially backed Nagoshi Studio since its 2021 founding, will stop funding the project in May 2026. The studio reportedly requires $44.4 million to complete Gang of Dragon, an action-adventure title set in Tokyo. While Nagoshi Studio is seeking new investors, Bloomberg reports no progress has been made so far.
Studio’s Options Moving Forward
- Continue development independently but pay NetEase for asset and brand rights
- Partner with alternative investors to secure remaining funding
- Risk project cancellation if no funding solution is found
What This Means for Gang of Dragon
Announced at The Game Awards 2025, Gang of Dragon features South Korean actor Ma Dong-Seok (Train to Busan, Eternals). The game’s fate now hinges on Nagoshi Studio’s ability to secure new backers. Without NetEase’s support, the project could face delays or cancellation.
Broader Industry Implications
This decision aligns with NetEase’s recent trend of cutting ties with underperforming ventures. In 2024, the company shut down Ouka Studio, signaling a shift toward prioritizing financially stable projects.
Key Takeaways
NetEase’s funding withdrawal highlights the risks of relying on external investors for game development. For players, the situation underscores the fragility of ambitious projects in the gaming industry. Nagoshi Studio’s next steps will determine whether Gang of Dragon becomes a reality or joins the ranks of canceled games.
Frequently Asked Questions
How will NetEase’s funding cut affect Nagoshi Studio?
The studio must now seek alternative investors or risk losing rights to Gang of Dragon and its assets.
What is Gang of Dragon?
An action-adventure game set in Tokyo, developed by Toshihiro Nagoshi’s studio and announced at The Game Awards 2025.
Why did NetEase stop funding Nagoshi Studio?
NetEase reportedly deemed the $44.4 million required to finish the project unsustainable.
Can Nagoshi Studio continue without NetEase?
Yes, but the studio would need to pay NetEase for asset and brand rights while securing new investors.
What other projects has NetEase canceled?
In 2024, NetEase shut down Ouka Studio, another casualty of its financial strategy shifts.
