NetEase will halt funding for Nagoshi Studio in May, leaving the Toshihiro Nagoshi-led developer approximately $44.4 million short of completing Gang of Dragon, according to a Bloomberg report published March 7, 2026.

The decision places both the in-development game and the studio itself in jeopardy roughly four months after Nagoshi unveiled Gang of Dragon at The Game Awards 2025. The title is the first project from Nagoshi Studio since the Yakuza creator left Sega and set up the new outfit with NetEase publishing backing.

What does the pullback change operationally?

Nagoshi Studio still requires around $44.4 million to finish Gang of Dragon. NetEase, which holds publishing rights, told Bloomberg it will stop financing the studio next month. The publisher is, per the report, "only open to negotiations if the studio can pay its way out," and Nagoshi will owe "the corresponding costs if it wants to keep the assets or brand."

That framing leaves the studio with three narrow paths:

• Secure a new publisher willing to absorb the remaining budget
• Buy out the NetEase contract and IP, then self-fund or seek alternative backing
• Shut down the project and lose both the asset library and the Gang of Dragon trademark

Nagoshi Studio's search for a successor publishing partner has so far produced no deal, Bloomberg reported.

How far along is Gang of Dragon?

Gameplay footage shown at The Game Awards 2025 placed Gang of Dragon in the open-world action mold of the Yakuza/Like a Dragon series Nagoshi built at Sega. South Korean actor Ma Dong-seok is attached for voice and likeness on the lead role. Detailed feature, platform and release plans have not been disclosed.

The unfinished status of the project is the central complication. With months of art, engineering and cinematic work tied to the title, the cost of salvaging it through a new deal stacks against the cost of walking away — and a still-skeletal public pitch limits what any successor partner can diligence.

Why is NetEase pulling back now?

The cut fits a broader retrenchment across NetEase's external studio portfolio. In late 2025, the company closed Fantastic Pixel Castle, the MMO studio founded by former World of Warcraft lead system designer Greg Street, after roughly two years of operation.

NetEase is not alone in scaling back. Chinese publisher Tencent has come under scrutiny from the Trump administration, which may move to force divestment of Tencent's stake in the US gaming market. For Japanese and Korean developers funded by Chinese publishers, both routes to capital now carry a higher political and contractual premium, and NetEase's posture at Nagoshi suggests a wider willingness to terminate deals rather than renegotiate them.

What to watch next

Two dates will define the studio's near-term future: NetEase's funding cut-off in May, and any buyout or asset-transfer agreement negotiated before then. If Nagoshi Studio cannot line up a successor publisher or pay for the IP, Gang of Dragon's existing assets revert to NetEase or face liquidation. Watch for corporate filings in Japan, South Korea or Singapore — jurisdictions where Nagoshi Studio is registered — for the first formal signal of either outcome.