The new studio led by Yakuza and Like A Dragon co-creator Toshihiro Nagoshi is reportedly facing closure after publisher NetEase cut its investment in the fresh-faced developer.
Instrumental in the creation of the Yakuza series and a Sega veteran of three decades, the famed developer opened Nagoshi Studio back in 2021 in partnership with publisher NetEase, the entertainment conglomerate behind several big hitters, including Marvel Rivals and Naraka Bladepoint.
Nagoshi Studio announced its very Yakuza-ish debut game only three months ago, an action brawler called Gang of Dragon, at The Game Awards 2025. But according to a new report from Bloomberg, NetEase plans on pulling funding from the studio later this year.
NetEase allegedly made the decision after finding out that Nagoshi Studio would need another ¥7 billion (about $44.4 million) to complete production, leaving the team's fate up in the air without a financial backer. Nagoshi is apparently seeking outside help and additional funding in other places, but hasn't had any luck so far.
The news is just the latest in a series of cuts NetEase has made in its games division. Worlds Untold, another new team headed by BioWare veterans, also had to pause operations after NetEase pulled funding, while some developers, such as Visions of Mana maker Ouka Studio, were shut down entirely.
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