NetEase has reduced financial support for Nagoshi Studio, the developer behind Gang of Dragon.

Starting May 2026, NetEase will discontinue financial support for Nagoshi Studio, the team behind the development of Gang of Dragon.

According to a report by Bloomberg, the studio's staff received this information on March 6. A representative from NetEase confirmed the development but did not provide details on the reasons or conditions related to the funding cessation.

Insiders have indicated that roughly ¥7 billion ($44.4 million) was estimated to be necessary for Nagoshi Studio to finalize its initial project, prompting the funding withdrawal.

In December, The Game Awards featured a teaser for Gang of Dragon.

The studio is reportedly on the lookout for new financial backers without much success. NetEase has communicated that although the studio can proceed independently, it would be responsible for the costs of maintaining its assets or branding.

Nagoshi Studio was established in 2021 by Yakuza series originator Toshihiro Nagoshi, who acts as the CEO and representative director.

Initially, NetEase announced that the studio would aim to craft premium console games for a global audience.

Nagoshi Studio joins a list of NetEase subsidiaries that have faced structural changes and budget reductions over the previous year.

Bad Brain Game Studios was closed down after failing to attract new funding. Fantastic Pixel Castle was sold to elude closure, but eventually shut down within a month without securing a new publisher.

Recently, Anchor Point Studios departed from NetEase to operate as an independent enterprise.