NetEase Cuts Funding to Nagoshi Studio; Gang of Dragons Needs ¥7 Billion

Employees of Nagoshi Studio Inc. were told of the decision on a Friday, according to people familiar with the situation, and a NetEase spokesperson confirmed it will stop financing the studio from May. The funding pull came after one of the people said NetEase determined that “additional funding of at least ¥7 billion ($44.4 million) would be needed for the project to be completed,” a figure the studio and potential backers now face as a hurdle.

Those people said Nagoshi is trying to find new sponsors without success so far, and that the studio is in discussions with NetEase on the handling of game materials already developed. The studio has been informed by NetEase that while it is free to continue on its own, it “must bear the corresponding costs if it wants to keep the assets or brand,” and NetEase is only open to negotiations if the studio can “pay its way out,” the sources said.

Nagoshi Studio unveiled a teaser for its debut game, Gang of Dragon, in December, coverage at the time noted. One outlet explicitly identified the reveal as taking place at The Game Awards 2025 and reported the action game stars Ma Dong-seok, saying the project was “deep into development.” Other commentators compared the teaser’s look to the Yakuza series, noting the visual and tonal resemblance to Toshihiro Nagoshi’s earlier work.

Toshihiro Nagoshi, best known as the creator of the Yakuza franchise, formed the developer in 2022 under NetEase after departing Ryu Ga Gotoku “a year earlier,” coverage of his studio’s founding states. That background frames why the studio’s funding status is drawing industry attention: Nagoshi’s name and the Gang of Dragon reveal had positioned the project as a high-profile international effort under NetEase’s umbrella.

Community reaction on forums has been blunt. A ResetEra user wrote, “It's always a bad sign if it's being publicly reported that they're having trouble finding a replacement for the funding,” while another comment called the timing “pretty scummy behavior on Netease's part, just pulling funding after promising it for development.” Posts on Famiboards added context, saying NetEase began cutting game investments under founder and Chief Executive Officer William Ding’s initiative and pointing to the closure of Ouka Studio in late 2024 as part of a wider retrenchment.

The immediate practical picture is stark: NetEase’s confirmed stop of financing from May, an estimated shortfall of at least ¥7 billion, and Nagoshi Studio’s inability so far to secure outside sponsors together make completion of Gang of Dragon contingent on a deep-pocketed buyer or investor willing to assume the cost and any asset-ownership terms. Unless such a backer emerges and agrees to the studio’s terms, Nagoshi Studio’s debut project and its ownership of developed assets risk being left in limbo.