Yakuza Creator's New Game May Be In Trouble As Funding Pulled

NetEase is allegedly cutting off funding for Nagoshi Studio, putting its debut game Gang of Dragon in jeopardy.

Nagoshi Studio, led by Yakuza franchise creator and Sega producer Toshihiro Nagoshi, was founded in 2021 following Nagoshi’s departure from his former company to go independent.

At the time, NetEase and Tencent Holdings competed for stakes in Nagoshi’s new studio after both companies were actively seeking overseas expansion, with Nagoshi eventually becoming a subsidiary of NetEase.

However, Bloomberg now reports that NetEase will cut off funding to Nagoshi Studio, calling it “the latest to be affected by the Chinese company’s broader strategy to shrink game development activities”.

According to the report, a NetEase spokesperson confirmed that it will stop funding the studio from May, giving Nagoshi Studio a few months to secure new financing.

Nagoshi Studio

Apparently, Nagoshi has been trying to find a new sponsor, but has had no success so far. If a successor can’t be found in time, it may lead to lay-offs and a potential studio closure.

Gang Of Dragon Is Nagoshi's First Game Following His Departure From Sega

NetEase is allowing Nagoshi to retain assets or branding related to Gang of Dragon, provided it can bear the corresponding costs associated with buying NetEase out.

Bloomberg states that NetEase’s decision to pull funding of the game came after it discovered that additional funding of at least ¥7 billion ($44.4 million) is needed for the project to be completed.

This news comes only months after Nagoshi Studio unveiled Gang of Dragon at The Game Awards 2025. It’s a game that looks suspiciously like Yakuza but is also 'not Yakuza', and stars South Korean-American actor Ma Dong-seok, who is best known for appearing in Marvel’s Eternals and Train to Busan.

As a fan of the series and Nagoshi’s work, I was puzzled but also optimistic to see what this new reinterpretation may look like. But now, it looks like the game may be in big trouble if a new sponsor can't be found in time.