NetEase to Halt Funding for Nagoshi Studio's Gang of Dragon

Employees at Nagoshi Studio, the Tokyo-based developer founded by acclaimed video game creator Toshihiro Nagoshi, were informed on Friday that parent company NetEase plans to cease funding for the studio's debut project, Gang of Dragon, starting in May. The decision, first reported by Bloomberg, threatens the future of the studio and its open-world action game, which resembles Nagoshi's long-running Yakuza series but with a more intense focus on violence.

The move comes after NetEase determined that Gang of Dragon requires an additional 7 billion yen, approximately $44.4 million, to reach completion. Sources familiar with the matter told Bloomberg that the studio has been actively seeking alternative sponsorship without success. Discussions are underway between Nagoshi Studio and NetEase regarding the potential acquisition of the studio's branding, intellectual property rights, and existing development assets, including work already completed on the game. NetEase has indicated that the team could continue development independently, but only if it covers the associated costs.

Nagoshi, who rose to prominence as the creative force behind Sega's Yakuza franchise, left the company in...