NetEase
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.
Nagoshi Studio briefly deleted its YouTube channel on April 24, 2026, alarming fans amid ongoing funding troubles with NetEase, before restoring it the next day with no listed videos.
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Development sources indicate Quantic Dream's Star Wars Eclipse remains years away from release. Parent company NetEase hesitates to expand the team amid financial concerns tied to the studio's recent game. Spellcasters Chronicles' poor Steam performance raises doubts about further investment.
Bad Brain Game Studios, founded by former Ubisoft developers, will shut down on November 17 due to funding issues after NetEase Games withdrew support. The studio's upcoming project, Midnight Riders, remains available for acquisition or partnership. This closure highlights ongoing challenges in Western game development tied to NetEase's recent pullback.