NetEase cuts funding to Gang of Dragon dev Nagoshi Studio

NetEase will stop funding Gang of Dragon developer Nagoshi Studio in May 2026.

Sources told Bloomberg that employees were informed of the decision last Friday (March 6). A NetEase spokesperson confirmed the news but did not elaborate on the reasons for the cut or exit terms.

People familiar with the situation said funding was pulled after NetEase reportedly found “at least ¥7 billion ($44.4 million) more would be needed” for Nagoshi Studio to complete its debut title.

It recently debuted a teaser trailer for Gang of Dragon at The Game Awards in December.

The developer is reportedly “trying to find new sponsors without success,” and has allegedly been told 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.”

Nagoshi Studio was founded in 2021 by Yakuza creator Toshihiro Nagoshi, who serves as the company’s CEO and representative director.

At the time of its formation, NetEase said the studio would focus on “developing high-quality console titles that will be released globally.”

Nagoshi Studio is one of many NetEase subsidiaries affected by restructuring and cuts over the past year.

Bad Brain Game Studios was shut down after failing to secure a new funding partner. Fantastic Pixel Castle was divested to avoid closure while seeking a new publisher, but was shuttered a month later.

Last month, Anchor Point Studios was spun out from NetEase and is transitioning to operate as an independent studio.