The latest venture from legendary Yakuza creator Toshihiro Nagoshi is reportedly facing a precarious future. According to a report from Bloomberg, Chinese tech giant NetEase is preparing to sever its financial ties with Nagoshi Studio. This sudden withdrawal comes as the publisher aggressively scales back its international gaming investments, leaving the recently announced action-adventure title Gang of Dragon in a state of uncertainty.
NetEase is expected to terminate its funding in May. Sources suggest the decision was prompted by the revelation that completing Gang of Dragon—which has already spent several years in production—would necessitate an additional 7 billion yen (approximately $44 million). So far, Nagoshi Studio has been unable to secure a new financial benefactor to bridge the gap. Requests for comment from the studio have not yet been answered.
Founded in 2022, Nagoshi Studio was established after Toshihiro Nagoshi and several veteran colleagues departed Sega and Ryu Ga Gotoku Studio to partner with NetEase. Nagoshi’s illustrious 30-year career at Sega included the development of iconic titles such as Daytona USA, Shenmue, and Super Monkey Ball. However, he is most celebrated for architecting the Yakuza (now known globally as Like a Dragon) franchise. After serving as Sega’s chief creative officer, he pivoted to independent development with the backing of Chinese capital.
The studio’s debut project, Gang of Dragon, was officially unveiled during The Game Awards in late 2025. The game bears a striking resemblance to the Like a Dragon series, casting South Korean star Ma Dong-seok (Don Lee) as Shin Ji-seong, a high-ranking member of a Korean crime syndicate operating in Tokyo’s Kabukicho district. The narrative follows Shin as he navigates brutal underworld conflicts and internal struggles. To distinguish the title from his previous work, Nagoshi has emphasized “overwhelming physical power,” promising a more visceral experience featuring lethal blade combat, intense gunplay, and high-speed vehicular action.
At present, Gang of Dragon lacks a definitive release date. While its Steam page lists the game as “coming soon,” the recent funding crisis casts doubt on that timeline.
This strategic retreat by NetEase follows a string of similar moves where the company has shuttered or divested from various international studios. Other developers affected by this shift include Worlds Untold (led by BioWare veteran Mac Walters), Jar of Sparks (founded by Xbox alum Jerry Hook), and Ouka Studio, the team behind Visions of Mana. Additional casualties include Greg Street’s Fantastic Pixel Castle and Bad Brain Game Studios. Despite these cuts, NetEase still maintains ownership of major entities like Grasshopper Manufacture and Quantic Dream.
Source: Polygon
