One of the giants of the gaming world, NetEase, is ending its funding of Nagoshi Studio, founded by Toşiro Naqoşi, the creator of the legendary "Yakuza" series. Starting in May 2026, the studio will be left to fend for itself.
According to information reported by Bloomberg, citing insider sources, employees were informed of the decision last Friday (March 6). Although an authorized NetEase representative confirmed the news, they declined to provide extensive details.
However, people familiar with the matter say the funding was cut because an additional 7 billion yen (approximately $44.4 million) was required to complete "Gang of Dragon", the studio’s debut project. NetEase’s management refused to pay this amount.
Recall that an interesting teaser for "Gang of Dragon" was shown at The Game Awards ceremony last December. The studio is now in a difficult position. According to reports, Naqoşi is currently looking for new sponsors, but there have been no results so far. NetEase told the studio that it could continue independently, but if it wants to retain the game’s assets and brand name, it will have to cover all expenses itself.
Founded in 2021, Nagoshi Studio was a key part of NetEase’s plans to enter the global console market. However, over the past year, the company has closed or restructured many of its studios:
- Bad Brain Game Studios - closed after failing to find a financial partner.
- Fantastic Pixel Castle - attempted to become independent but ceased operations a month later.
- Anchor Point Studios - announced last month that it had left NetEase and become independent. It appears that even the biggest names cannot secure financial backing in the era of big-budget games.
