NetEase Cuts Funding for Nagoshi Studio’s ‘Gang of Dragon’

NetEase Inc. Has decided to cease funding for Nagoshi Studio, the development team led by Yakuza franchise creator Toshihiro Nagoshi, as part of a broader strategy to reduce investment in game development. The decision, announced on March 7, 2026, casts uncertainty over the future of the studio’s debut project, the action game Gang of Dragon.

Funding Withdrawal and Financial Concerns

The funding withdrawal comes after NetEase discovered that Gang of Dragon required an additional seven billion yen (approximately $44.4 million) to reach completion Bloomberg, Final Weapon, Video Games Chronicle, Rock Paper Shotgun. Nagoshi is currently seeking alternative funding sources, but has yet to secure a modern investor Final Weapon, Rock Paper Shotgun.

Potential for Independence and Asset Ownership

NetEase has reportedly offered Nagoshi Studio the opportunity to turn into independent, allowing the studio to retain the game’s assets and branding if they can cover the associated costs Final Weapon. Discussions are underway regarding the handling of already-developed game materials Final Weapon.

Background on Nagoshi Studio and ‘Gang of Dragon’

Nagoshi Studio was established in November 2021 as a subsidiary of NetEase Games, spearheaded by Toshihiro Nagoshi, former COO of SEGA and director of the Yakuza series Final Weapon. The studio likewise includes former SEGA and Yakuza staff members Daisuke Sato and Kazuki Hosokawa Final Weapon. Gang of Dragon, featuring South Korean and American actor Ma Dong-seok as its protagonist, was revealed at The Game Awards 2025 Final Weapon, Video Games Chronicle.

NetEase’s Broader Restructuring

This decision is part of a larger trend of NetEase scaling back its international game development operations, including layoffs and studio closures Bloomberg, Video Games Chronicle. Other studios affected by these cuts include T-Minus, FPC, Awful Brain, Worlds Untold, and Jar of Sparks Video Games Chronicle.