Nagoshi Studio Faces Closure After NetEase Pulls Funding

The debut game from Nagoshi Studio, Gang of Dragon, is facing uncertainty as NetEase Inc. Plans to cut off funding to the studio in May. This decision is part of a larger trend of NetEase scaling back its international game development operations.

NetEase Cuts Funding for Gang of Dragon

Employees of Nagoshi Studio were informed on Friday, March 6, that NetEase intends to cease funding for Gang of Dragon, announced at The Game Awards 2025 just three months prior Bloomberg. The decision came after NetEase discovered the project required an additional ¥7 billion ($44.4 million) to reach completion Video Games Chronicle.

Nagoshi Seeks Alternative Funding

Toshihiro Nagoshi, the founder of Nagoshi Studio and creator of the Yakuza franchise, is reportedly seeking alternative funding to continue development on Gang of Dragon, but has yet to find a sponsor Video Games Chronicle. Discussions are underway with NetEase regarding the acquisition of rights and branding, as well as any work already completed Eurogamer.

About Gang of Dragon

Gang of Dragon is an action-adventure game set in Tokyo, starring Ma Dong-seok, known for his roles in Train to Busan, The Outlaws and Marvel’s Eternals Video Games Chronicle. The game was announced in December 2025.

NetEase’s Broader Restructuring

Nagoshi Studio’s situation is part of a larger pattern of NetEase scaling back its international game development. The company has closed several studios, including Ouka Studio (developer of Visions of Mana) in 2024 Gematsu, and has also split from Vancouver-based Worlds Untold and Seattle-based Jar of Sparks Bloomberg.

Future of Nagoshi Studio

NetEase has reportedly offered Nagoshi Studio the opportunity to become independent, but would require the studio to pay for the rights to retain the brand and assets Gematsu. The studio’s future remains uncertain as it navigates these challenges.