Nagoshi Studio reportedly facing closure, after NetEase ‘pulls Gang of Dragon funding’

March 8, 2026 - 05:11

The future of Yakuza creator Toshihiro Nagoshi's independent studio is under serious threat, according to new reports. Nagoshi Studio, founded after Toshihiro Nagoshi's high-profile departure from Sega, is allegedly facing potential closure after its primary financial backer, Chinese gaming giant NetEase, reportedly withdrew funding for its first major project.

The studio had publicly announced its debut action-adventure title, Gang of Dragon, just three months ago. The sudden funding pull has thrown the project and the studio's operations into immediate jeopardy. While neither Nagoshi Studio nor NetEase has issued an official statement, sources indicate the decision was part of a broader strategic shift by NetEase to scale back its investments in several overseas game development studios.

This development marks a significant setback for Nagoshi, who formed the studio with a vision of creating global hits outside the structure of a major publisher. The team, which includes several veteran developers from the Yakuza and Judgment series, now faces an uncertain future. The gaming industry is watching closely to see if the studio can secure alternative funding or if this potentially marks the end of this promising venture before its first game even reaches the market.