Gang of Dragon developer Nagoshi Studio reportedly facing closure after NetEase cuts funding

Nagoshi Studio, the developer founded by Yakuza creator Toshihiro Nagoshi, is reportedly close to shutting down after Chinese gaming giant NetEase pulled funding for its debut title, Gang of Dragon.

The details:

• As reported by Bloomberg, the studio’s employees were informed on Friday that NetEase plans to withdraw its funding for Gang of Dragon in May 2026, just months after the game's announcement at The Game Awards in December. It’s said that the decision was made after NetEase was informed that the project would require an additional ¥7 billion JPY ($44.4 million USD) in order to complete.
• While the closure of Nagoshi Studio is not confirmed, the developer is reportedly actively seeking alternative funding sources, including an entire buyout, in order to keep itself and Gang of Dragon alive. However, its attempts have been unsuccessful so far.
• This marks yet another case of NetEase pulling funding from external studios as it reduces its global reach. In just over a year, the publisher has scrapped partnerships with a number of studios, including Worlds Untold, Jar of Sparks, Ouka Studio, and Fantastic Pixel Castle.