The future of Gang of Dragon, the debut title from Nagoshi Studio, may be uncertain following a new report suggesting that NetEase has decided to stop funding the developer.
According to a report from Bloomberg, NetEase plans to cut financial support for the studio led by Yakuza series creator Toshihiro Nagoshi. The decision is said to be part of the company’s broader effort to reduce its game development investments.
Employees at Nagoshi Studio were reportedly informed of the change on Friday, according to people familiar with the matter. A NetEase spokesperson confirmed to Bloomberg that the company will stop financing the studio starting in May.
The move could put the studio’s first project, Gang of Dragon, at risk before it reaches completion. The game was first teased in December and represents Nagoshi Studio’s debut project since the veteran developer left Sega in 2021 to establish the independent team.
According to the report, NetEase reconsidered its involvement after discovering that the project would require additional funding of at least ¥7 billion, or approximately 44.4 million dollars, in order to be completed.
Sources familiar with the situation said Nagoshi is currently attempting to secure alternative funding for the project but has not yet found a new sponsor. The studio is also reportedly discussing with NetEase how existing development materials and assets will be handled.
The report indicates that Nagoshi Studio may continue development independently if it chooses, though the studio would need to assume the financial costs associated with retaining the game’s assets or brand. NetEase is said to be open to negotiations only if the studio is able to pay for those rights.
Nagoshi Studio was founded in 2021 after Toshihiro Nagoshi departed Sega. At the time, both NetEase and Tencent were actively pursuing partnerships with Japanese developers as part of their international expansion efforts, ultimately leading to NetEase backing the new studio.
Gang of Dragon was officially revealed during The Game Awards 2025. The project stars actor Ma Dong-seok as Shin Ji-seong, a syndicate enforcer involved in a gritty crime story set in a realistic depiction of Shinjuku. The game currently carries a tentative release window and has been confirmed for PC via Steam, while potential console versions for PlayStation 5 and Xbox Series X and Series S have not yet been officially announced.
