NetEase Cuts Funding for Nagoshi Studio, Future of ‘Gang of Dragon’ Uncertain
The debut game from Nagoshi Studio, Gang of Dragon, faces an uncertain future as NetEase Inc. Plans to cease funding the studio starting in May. The decision, announced to employees on Friday, marks the latest in a series of cutbacks within NetEase’s game development operations according to Bloomberg.
Nagoshi Studio’s Origins and ‘Gang of Dragon’
Nagoshi Studio was established in November 2021 after Toshihiro Nagoshi, the creator of the Yakuza franchise, left Sega Sammy Holdings Inc. To pursue independent game development as reported by Gematsu. NetEase and Tencent Holdings Ltd. Both competed to secure Nagoshi’s studio at the time.
The studio unveiled a teaser for Gang of Dragon at The Game Awards 2025, an action-adventure game set in Tokyo starring South Korean-American actor Ma Dong-seok, known for roles in Train to Busan and Marvel’s Eternals as detailed by Video Games Chronicle.
Financial Challenges and NetEase’s Strategy Shift
NetEase’s decision to cut funding stems from the discovery that an additional ¥7 billion (approximately $44.4 million) would be required to complete Gang of Dragon Bloomberg reports. Nagoshi is currently seeking alternative sponsors, but has yet to secure additional funding.
This move aligns with NetEase’s broader strategy to scale back its international game development activities, initiated under founder and CEO William Ding. The company has already closed several studios, including Ouka Studio – which pioneered NetEase’s overseas expansion – in late 2024 as confirmed by The Star. Other closures include T-Minus, FPC, Terrible Brain, Worlds Untold, and Jar of Sparks according to Video Games Chronicle.
Potential Outcomes for Nagoshi Studio
Nagoshi Studio is in discussions with NetEase regarding the handling of already-developed game materials. NetEase has reportedly offered the studio the option to continue independently, but would require them to cover the costs of retaining the brand and assets Gematsu details. The studio’s future remains uncertain as it attempts to secure latest investment.