NetEase Reportedly Pulling Funding for Nagoshi Studio

Plans for Gang of Dragon, the much-anticipated debut from Nagoshi Studio, may be facing a major obstacle. Bloomberg reports that Chinese tech giant NetEase is expected to stop funding the studio beginning in May, a move that could upend the project's timeline and financing.

According to the report, NetEase concluded that Nagoshi Studio would need roughly $44.4 million to complete Gang of Dragon. After that assessment, the publisher opted to cut back support. Bloomberg cited confirmations from studio employees and a NetEase spokesperson.

Nagoshi Studio, founded by Toshihiro Nagoshi—the creator of the Yakuza franchise—has been working on the Tokyo-set action-adventure title for several years. Public awareness of the game grew after a trailer debut at The Game Awards 2025, which also revealed that actor Ma Dong-Seok is attached to star.

The studio is reportedly searching for new sponsors but has not yet secured alternative funding. Bloomberg noted that Nagoshi Studio could continue development independently, but doing so would likely require compensating NetEase to retain rights to certain assets or the brand.

If NetEase follows through, Nagoshi Studio would join other projects affected by the publisher’s strategic pullbacks in recent years. The situation highlights the precarious balance between creative ambition and the financial realities facing independent studios that rely on large corporate backers.

For fans and industry observers, the next few weeks will be telling: whether Nagoshi Studio can land new partners, scale the project to match available resources, or pivot its plans to keep Gang of Dragon alive.