NetEase Withdraws Funding from Nagoshi Studio: The Future of <em>Gang of Dragon</em> Unclear
NetEase Games has announced it will cease funding Nagoshi Studio starting in May, a decision that jeopardizes the development of Gang of Dragon, the highly anticipated title from Yakuza creator Toshihiro Nagoshi. The game's trailer debuted at The Game Awards 2025. This move is part of NetEase's
NetEase Games has announced it will cease funding Nagoshi Studio starting in May, a decision that jeopardizes the development of Gang of Dragon, the highly anticipated title from Yakuza creator Toshihiro Nagoshi. The game's trailer debuted at The Game Awards 2025. This move is part of NetEase's broader strategy to reduce its investments in international video game development, as confirmed by a company spokesperson to Bloomberg.
Nagoshi Studio, founded in November 2021 after Nagoshi's departure from SEGA and Ryu Ga Gotoku Studio, faces a significant challenge. Completing Gang of Dragon requires an additional investment of at least 7 billion yen (approximately $44.4 million USD). NetEase, currently undergoing global restructuring with studio closures and layoffs—including Ouka Studios, developers of Visions of Mana—has opted not to cover this additional cost.
What's Next for Gang of Dragon?
Employees were notified of this decision on March 6. Toshihiro Nagoshi is actively seeking new financial partners to salvage the project, though no successful agreements have been reported to date.
Regarding intellectual property and developed materials, the exit conditions are strict:
- NetEase allows the studio to become an independent entity.
- To retain the company name and the game's technical advancements, the studio must pay financial compensation to "buy" its exit.
- Both parties are in discussions to determine how existing materials will be managed if the necessary capital is not secured.
For now, NetEase Games has not made the specific terms of the exit agreement public. Furthermore, the ultimate fate of the employees remains unknown if a new financial alliance is not established before the May deadline.
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