NetEase Cuts Nagoshi Studio Funding

Toshihiro Nagoshi, the celebrated creator of the long-running "Yakuza" video game series, departed from Sega in 2021 to establish his own independent company, Nagoshi Studio. The new venture was fully funded by Chinese technology and gaming giant NetEase, with the stated goal of developing high-quality console titles for a global audience. The studio's debut project, "Gang of Dragon," was unveiled with a teaser trailer at The Game Awards in December 2025. The game drew immediate comparisons to the Yakuza franchise and was set to star South Korean-American actor Ma Dong-seok, known for his roles in "Train to Busan" and Marvel's "Eternals." The decision to pull funding is part of a larger trend of NetEase restructuring and shrinking its international gaming investments. In the past year, the company has shut down Bad Brain Game Studios, divested Fantastic Pixel Castle before its closure, and spun out Anchor Point Studios to operate independently. Nagoshi Studio is reportedly searching for new sponsors to continue development, but has so far been unsuccessful. According to sources, NetEase has stipulated that while the studio is free to continue on its own, it must cover the associated costs if it wishes to retain the "Gang of Dragon" brand or any existing assets.