With NetEase Games slashing expenditure on its gaming division significantly over the past several years, it seems that Nagoshi Studio is the latest to be hit. Founded by Toshihiro Nagoshi of Yakuza fame and currently developing Gang of Dragon, its funding will cease by May, per spokesperson to Bloomberg.
While it didn’t outright state the reason, anonymous sources told the website that the upcoming title would reportedly require ¥7 billion or $44.4 million of funding to complete. As a result, NetEase is leaving the studio to go its own way, but while it could carry on development, it would allegedly need to pay for the IP and its assets.
As a result, Nagoshi is reportedly in the process of locating “new sponsors,” but thus far, there’s been no headway. If it can’t procure enough funding, then the title may face cancellation. It’s worth noting that Nagoshi Studios was established in 2022, and development has seemingly been ongoing ever since.
Announced at The Game Awards 2025, Gang of Dragon is similar to Yakuza with its beat ’em up mechanics, an action-adventure format, and Kabukicho as a setting. Players control Shin Ji-seong (played by actor Ma Dong-seok), who’s part of a Korean syndicate. It also promises “gunplay” and “high-impact vehicle action” with the option to customize one’s rides.