Nagoshi Studio Faces Closure as NetEase Cuts Funding

The future of Nagoshi Studio, founded by Yakuza series creator Toshihiro Nagoshi, is in jeopardy as NetEase Games plans to cut off funding in May. This decision comes just months after the studio unveiled its debut title, Gang of Dragon, at The Game Awards in December 2025.

NetEase Scales Back Game Development

NetEase Games announced its intention to cease funding Nagoshi Studio as part of a larger effort to reduce its game development activities, according to a company spokesperson confirmed to Bloomberg. The move follows a series of studio closures and layoffs worldwide, including the recent shutdown of Ouka Studios, the developer of Visions of Mana.

Funding Shortfall for Gang of Dragon

The decision to cut funding reportedly stemmed from the discovery that Gang of Dragon required an additional ¥7 billion (approximately $44.4 million) to complete development, as reported by Gematsu and Video Games Chronicle. Nagoshi is currently seeking alternative investors, but has yet to secure additional funding.

Studio’s Options and Future

NetEase has reportedly offered Nagoshi Studio the opportunity to become independent, but only if the studio can finance its way out and acquire the rights to its assets and brand, according to Gematsu. The studio is currently in discussions with NetEase regarding the handling of already developed game materials.

About Nagoshi Studio

Nagoshi Studio was established in November 2021 after Toshihiro Nagoshi’s departure from Ryu Ga Gotoku Studio and SEGA, as noted by Gematsu. Several members of his former team also joined the fresh studio, including Yakuza director and producer Daisuke Sato, as reported by Eurogamer.

Gang of Dragon Details

Gang of Dragon, an action game starring actor Ma Dong-seok, was announced at The Game Awards 2025. Nagoshi previously stated his commitment to delivering a debut game that would satisfy fans of his previous perform, as reported by Video Games Chronicle.