adminNagoshi Studio funding is expected to end in May 2026, leaving the developer of Gang of Dragon facing questions about how it will complete its debut game. Reports say the decision followed an estimate that at least ¥7 billion ($44.4 million) in additional funding would be required.
Image credit: Nagoshi Studio
Nagoshi Studio funding decision and reported reasons
NetEase plans to stop funding Nagoshi Studio in May 2026, according to information reported by Bloomberg. Employees were reportedly told about the decision on Friday, March 6. A NetEase spokesperson confirmed the funding change but did not explain the reasons or outline the terms of the company’s exit.
People familiar with the matter said the decision came after NetEase determined that at least ¥7 billion ($44.4 million) more would be needed to finish the studio’s first game. That figure is a reported estimate, not a confirmed final development budget. For readers following the project, the key distinction is that the funding plan is changing; the report does not confirm that development has ended.
What the funding change could mean for Gang of Dragon
Nagoshi Studio is reportedly seeking new sponsors, but has not yet found one. NetEase is said to have told the studio it can continue independently, while also making clear that the developer would be responsible for the associated costs if it wants to retain the game’s assets or brand.
The studio recently revealed a teaser trailer for Gang of Dragon at The Game Awards in December. However, the reported funding decision leaves the project’s next steps uncertain. No replacement sponsor, revised development schedule, or further release details were included in the report. Until those details are confirmed, the trailer remains the clearest public indication of the game’s direction.
Nagoshi Studio’s background and NetEase restructuring
Toshihiro Nagoshi, creator of the Yakuza series, founded Nagoshi Studio in 2021 and serves as its CEO and representative director. When the studio was established, NetEase said it would develop high-quality console games for global release.
The reported change is part of a wider pattern of restructuring affecting NetEase subsidiaries. Bad Brain Game Studios closed after it could not secure a new funding partner. Fantastic Pixel Castle was divested while it looked for a new publisher, then shut down a month later. In the previous month, Anchor Point Studios separated from NetEase and began transitioning to independent operations.
What to watch next
The most useful updates to look for are confirmation of whether Nagoshi Studio secures a sponsor, clarification of who will own or control Gang of Dragon’s assets and brand, and any announcement about the project’s development status. For now, the reported Nagoshi Studio funding cut does not by itself confirm the game’s cancellation, but it does make its financing and future plans uncertain.
