NetEase has reportedly decided to pull its financial backing from Nagoshi Studio, the developer founded by Yakuza and Like a Dragon veteran Toshihiro Nagoshi, putting the studio's debut title Gang of Dragon at serious risk before it ever reaches players.
Funding Cut Leaves Studio in Limbo
According to a Bloomberg report published March 7, NetEase informed the outlet that it will stop financing Nagoshi Studio in May. The decision stems in part from the estimated cost required to bring Gang of Dragon to completion, which stands at approximately $44.4 million. With that price tag on the table and no confirmed replacement backer, the studio finds itself in a precarious position.
Nagoshi Studio has reportedly come up empty in its search for a new publishing partner so far. A deal with NetEase to retain ownership of the game's existing assets has also not been finalized. Bloomberg notes that NetEase is only willing to negotiate under specific conditions, requiring the studio to cover the corresponding costs if it wants to hold onto its assets or brand. That puts Nagoshi Studio in a difficult spot, needing to either secure outside funding quickly or risk losing the work already completed.
What Is Gang of Dragon?
Gang of Dragon made its debut during The Game Awards 2025, where the world premiere trailer drew immediate attention from fans of Nagoshi's previous work. The early footage carried a visual and tonal resemblance to the Yakuza franchise, which Nagoshi helped build into one of gaming's most beloved action series.
South Korean actor Ma Dong-seok, known internationally for his role in Train to Busan, lends both his voice and likeness to the game's lead character. Beyond that casting detail and the debut trailer, few specifics about Gang of Dragon's gameplay or story have been made public.
The game was announced for PC, PlayStation 5, and Xbox Series X.
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No release date for Gang of Dragon has ever been announced. With funding now in question, any timeline for the game's launch remains completely undefined.
Ma Dong-seok leads Gang of Dragon
A Broader Pattern of NetEase Studio Closures
This is not the first time NetEase has withdrawn support from a Western studio. Near the end of 2025, the company shut down Fantastic Pixel Castle, an MMO studio led by Greg Street, the former lead system designer on World of Warcraft, after just two years of operation.
The situation at Nagoshi Studio fits into a wider trend of Chinese publishers reassessing their investments in global game development. Tencent, another major Chinese gaming company, has also faced increased political scrutiny from the Trump administration, which may push for the company to reduce its footprint in the U.S. gaming market. Here's the thing: these developments signal a tightening environment for studios that rely on Chinese publisher funding to get ambitious projects off the ground.
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Nagoshi Studio was founded after Toshihiro Nagoshi departed Sega in 2022, with NetEase backing the new venture from its early stages.
What most players miss in situations like this is just how far along a game can be before funding collapses. Gang of Dragon already had a polished enough trailer to show publicly at one of gaming's biggest annual events, which makes the uncertainty around its future all the more striking. Whether Nagoshi Studio can secure the backing it needs to push the project across the finish line remains to be seen.
Source: Gamespot
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Frequently Asked Questions (FAQs)
Is Gang of Dragon cancelled?
Not officially. As of the Bloomberg report, Gang of Dragon is in an uncertain state rather than formally cancelled. NetEase plans to stop funding Nagoshi Studio in May, and the studio has not yet secured a replacement publisher.
How much does Gang of Dragon need to finish development?
According to Bloomberg, completing Gang of Dragon requires approximately $44.4 million in additional funding.
What platforms was Gang of Dragon announced for?
Gang of Dragon was announced for PC, PlayStation 5, and Xbox Series X at The Game Awards 2025.
