In a nutshell

• NetEase to end funding for Nagoshi Studio by May 2026.
• Studio’s debut game Gang of Dragon requires ¥7 billion ($44.4M) more to finish.
• Nagoshi is seeking new sponsors but has yet to secure backing.

NetEase has decided to cut off funding for Nagoshi Studio, the Japanese developer founded by Yakuza creator Toshihiro Nagoshi, according to a report from Bloomberg.

Gang of Dragon in Danger

The move, set to take effect in May 2026, comes as part of NetEase’s broader strategy to scale back its global gaming investments. The studio’s debut project, Gang of Dragon, was revealed in late 2025, but development costs have ballooned, with NetEase estimating an additional ¥7 billion (around $44.4 million) would be required to finish the game.

NetEase has told Nagoshi Studio it may continue independently, but the costs of assets and branding will now fall on the studio itself.

Nagoshi Studio, established in 2021 after Nagoshi left SEGA, was one of NetEase’s high-profile investments in Japan, alongside other efforts to recruit top talent in the region. However, the company has already shuttered Ouka Studio in 2024, signaling a retreat from its earlier expansion push.

For fans eagerly awaiting Gang of Dragon, the future of the project now depends on whether Nagoshi can secure new sponsors to keep the studio alive.