NetEase Games to Stop Funding Nagoshi Studio as It Shrinks Game Development - News

by William D'Angelo , posted on 07 March 2026 / 4,879 Views

NetEase Games will be cutting off funding to Nagoshi Studio in May, according to a spokesperson that spoke with Bloomberg.

Nagoshi Studio is led by Yakuza franchise creator Toshihiro Nagoshi and the reason for the end of funding is due to NetEase moving away from video game development. Employees at the studio were told of the decision on Friday, according to people familiar with the situation.

Nagoshi Studio was founded in November 2021 under NetEase Games after Toshihiro Nagoshi left Sega and Ryu Ga Gotoku Studio.

The studio announced its first game, Gang of Dragon, at The Game Awards 2025. It is an action-adventure game set in Kabukicho, the iconic nightlife district of Shinjuku, Tokyo.

Funding to the studio was reportedly cut after NetEase Games discovered Gang of Dragon would require at least another 7 billion yen ($44.4 million) in order to finish development.

Nagoshi Studio will be allowed to go independent, however, it will need to pay out in order to keep its assets and brand.

A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can follow the author on Bluesky.

6 Comments

Leynos (on 07 March 2026)

Well that game is never coming out. RIP. Looked cool. Netease is trash. They also killed the studio that made Visions of Mana the day the game release. I wish Netease nothing but the worst.