NetEase is reportedly pulling funding for Yakuza creator's studio

Source: Engadget

Funding Cut

According to a Bloomberg report, Chinese tech giant NetEase will stop financing Nagoshi Studio starting in May. Bloomberg confirmed the news with both the studio’s employees and a NetEase spokesperson.

The report explains that NetEase decided to cut funding after learning the studio needed $44.4 million to complete its debut game, Gang of Dragon. Nagoshi Studio is reportedly seeking new sponsors but has not found any so far. The studio could continue the project on its own, but it would be responsible for paying NetEase for any costs associated with retaining the brand or assets.

Impact on Gang of Dragon

Nagoshi Studio has been developing Gang of Dragon since its founding in 2021. The public first saw the game in a trailer announcement during The Game Awards 2025. The action‑adventure title, set in Tokyo, would star South Korean actor Ma Dong‑Seok (known for Train to Busan and Marvel’s Eternals).

With NetEase withdrawing its financial support, the project now faces uncertainty and may join other casualties of NetEase’s recent executive decisions, such as the shutdown of Ouka Studio in 2024.

Background

Nagoshi Studio was founded in 2021 by Toshihiro Nagoshi, the creator of the Yakuza franchise. The studio’s first game, Gang of Dragon, represents its debut effort. NetEase’s decision to pull funding follows a pattern of the company reevaluating its investments in external studios.