Gang of Dragon And Nagoshi Studio Faces Closure After NetEase Ends Funding This May

A sad and anticlimactic end to a game that might never happen.

NetEase is no longer interested in supporting Toshihiro Nagoshi and Nagoshi Studio.

Nagoshi was a Sega career man, working in the company straight out of university at Virtua Racing in 1992. After leading the company’s Yakuza/Like A Dragon/Ryu Ga Gotoku franchise, Nagoshi suddenly left Sega at 2021.

Nagoshi took a giant offer from NetEase to form Nagoshi Studio and make new original titles. Last year, Nagoshi Studio revealed Gang of Dragon, their first action game starring Train To Busan’s Ma Dong-Seuk.

Today, Bloomberg reports that NetEase will stop funding Nagoshi Studio and Gang of Dragon this May. NetEase confirmed the news after they received a tip that NetEase balked at funding an additional $ 44.4 million to finish the game.

Nagoshi Studio is free to continue on their own, but they have to secure their own funding to do so. Nagoshi Studio declined to comment.

NetEase underwent restructuring last February 2025. There were concerns they would target Nagoshi Studio or Grasshopper Manufacture then, but that didn’t come to pass.

It’s regrettable if Nagoshi and his fellow ex-Yakuza team took this NetEase deal only to be dropped at the last minute.