NetEase reduces financial support to Nagoshi Studio, the developer behind Gang of Dragon

Financial backing from NetEase for Nagoshi Studio, the developer behind Gang of Dragon, will cease in May 2026.

According to Bloomberg, employees learned about the funding halt on March 6. A spokesperson from NetEase confirmed the information without providing further details on the withdrawal's cause or terms of separation.

Insiders reveal that NetEase decided to withdraw funding after realizing an additional ¥7 billion ($44.4 million) would be necessary for the completion of Nagoshi Studio's initial game.

In December, a teaser trailer was showcased at The Game Awards for Gang of Dragon.

The studio is reportedly searching for new financial support but has yet to secure any. NetEase has indicated that the studio can continue operating independently but needs to cover costs if it wishes to retain its assets and branding.

Established in 2021 by Toshihiro Nagoshi, the Yakuza creator, Nagoshi Studio focuses on high-quality console games for a global audience.

Nagoshi Studio is among several NetEase subsidiaries impacted by restructuring and financial cuts in the past year.

Bad Brain Game Studios was closed due to an inability to find a new funding source. Fantastic Pixel Castle was divested, but later closed after seeking a new publisher.

Recently, Anchor Point Studios separated from NetEase and is reestablishing itself as an independent entity.