NetEase has notified Nagoshi Studio it will stop funding from May 2026 for its debut game Gang of Dragon, after the studio requested an additional ¥7 billion ($44.4 million) to complete the project unveiled at The Game Awards 2025. The studio may continue independently if it secures alternative funding and negotiates to buy back IP rights.
Toshihiro Nagoshi, creator of the Yakuza series at Sega, founded Nagoshi Studio under NetEase in 2021. Its first project, the open-world action game Gang of Dragon starring Korean actor Ma Dong-seok (Don Lee), was revealed at The Game Awards in December 2025 as 'deep into development.' The title features a more brutal tone with guns and vehicles compared to Yakuza.
On March 6, 2026, NetEase informed employees it would cease funding from May 2026 due to rising costs, per Bloomberg. This fits NetEase's strategy to cut overseas investments and prioritize China, including closures or funding cuts for Ouka Studio (December 2024), Fantastic Pixel Castle, Bad Brain Games (November 2025), Jar of Sparks, Liquid Swords (earlier 2025), T-Minus, and splits from Worlds Untold and others.
Nagoshi Studio is seeking alternative backers. NetEase stated it would allow independent continuation if the studio covers costs and buys back intellectual property and licensing rights. No new funding confirmed yet; neither party has commented officially.
In a 2023 VGC interview, Nagoshi vowed not to disappoint fans. This reflects industry pressures on AAA games amid layoffs and closures since 2024, leaving Gang of Dragon's future uncertain.