Upcoming game Gang of Dragon faces uncertainty as Nagoshi Studio loses funding from NetEase due to high development costs.
According to a Bloomberg report, Chinese gaming giant NetEase has announced that it will stop financing Nagoshi Studio, the team led by Yakuza creator Toshihiro Nagoshi, as part of the company’s broader cost-cutting strategy.
It is said that employees at Nagoshi Studio were just informed on 6th March of the studio's pending closure, as NetEase plans to stop supporting the studio from May 2026. This shocking funding halt for Nagoshi Studio puts its debut title, Gang of Dragon, at serious risk.
The game, unveiled at The Game Awards 2025, has drawn comparisons to the Yakuza and Like a Dragon franchises. It also notably stars renowned Korean actor Ma Dong-seok as the protagonist, which has helped attract significant attention to the game.
However, with the studio in jeopardy, Gang of Dragon could face significant delays. In the worst case, it could be cancelled entirely.
NetEase withdraws funding due to high development costs
According to Bloomberg, NetEase’s decision to stop supporting the studio comes after it determined that completing Gang of Dragon would require an additional ¥7 billion (approximately US$44.4 million). Given that the project has already been in development for around four years, NetEase is unwilling to cover the additional expenses.
Nagoshi Studio is reportedly seeking new sponsors to continue development independently, but thus far no success has been reported to that end. If new funding cannot be secured, the studio’s only option to save itself–and its nearly completed game–will be to buy back the rights and assets associated with the project, as reportedly said by NetEase.
NetEase is just one of several major publishers–including Ubisoft, Bungie and Riot Games– implementing widespread cost-cutting measures. Last month, the company closed T-Minus Zero and Bad Brain Studios, plus laid off employees across multiple studios, including locations in Shenzhen and Montreal.
Unfortunately, this wave of cost-cutting has now reached Nagoshi Studio, dealing a major blow to fans who were hoping for a smooth release of Gang of Dragon.
