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Illustration of Nagoshi Studio employees in shock amid office closure due to funding cut, with Gang of Dragon game art and rainy Tokyo backdrop.
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NetEase halts funding for Toshihiro Nagoshi's Gang of Dragon, allows studio to continue independently

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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.

Microsoft held its first Xbox Game Dev Update showcase on May 7, recapping earlier Project Helix details from the March GDC presentation for developers who missed the original event.

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The official Assassin’s Creed account publicly criticized a well-known leaker on X for posting an image from a private playtest that had been heavily altered using AI. The exchange unfolded on May 5, 2026, after the leaker shared what he claimed was an early screenshot from the rumored title codenamed Invictus. Ubisoft confirmed the image originated from internal testing but rejected the edited version as misinformation.

Tencent has shut down its TiMi Montreal studio less than five years after its founding, without the team releasing any games. The closure marks another retreat by Chinese publishers from investments in North American development. Employees expressed heartbreak over the end of the promising venture.

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Ubisoft CEO Yves Guillemot has confirmed that two Far Cry projects and several Assassin's Creed titles are in active development under the new Vantage Studios. These include single-player and multiplayer experiences for Assassin's Creed, building on a community of over 30 million players last year. The announcement comes amid the company's major restructuring efforts.

Goichi Suda, known as Suda 51, has explained why his studio Grasshopper Manufacture avoided generative AI tools in creating the upcoming action game Romeo is a Dead Man. In an interview with Eurogamer, he described AI-generated content as feeling 'off' and emphasized the value of human passion in game development. The game draws from zombie films and other influences, releasing on February 11 for PC, PS5, and Xbox Series X/S.

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Developer AdHoc Studio has apologized for the poor placement of a disclaimer about censored content in its game Dispatch on Nintendo Switch, insisting it was not an attempt to hide the changes. The studio acknowledged the error occurred after the game's launch on January 28, 2026, and is working with Nintendo on an update to restore some uncensored elements. Nintendo reaffirmed that all games on its platform must comply with its content guidelines.

 

 

 

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