Nagoshi's gang of dragons in jeopardy: netease cuts funding

The ambitious action-adventure title, long anticipated by fans, faces potential cancellation just months after its high-profile unveiling at The Game Awards 2025.

Netease to halt funding for gang of dragons

Bloomberg reports that Nagoshi Studio employees were informed last Friday that NetEase intends to withdraw financial support for the game starting next month. The decision reportedly stems from the discovery that Gang of Dragons requires an additional ¥7 billion (approximately €38 million) to reach completion.

Toshihiro Nagoshi, the mastermind behind the Yakuza saga, is reportedly seeking alternative funding to salvage the project, but efforts have so far been unsuccessful. Neither NetEase nor Nagoshi Studio has commented further, leaving the project’s future shrouded in uncertainty. Sources at VGC indicated the game was in full development, suggesting a launch window of a couple of years.

This situation isn't an isolated incident. NetEase has been systematically scaling back its international game funding initiatives, recently shuttering studios like T-Minus, FPC, and Bad Brain, and severing ties with Worlds Untold. In Japan, Ouka Studio, responsible for Visions of Mana for Square Enix, closed its doors in 2024. While some studios, such as Grasshopper Manufacture and GPTRACK50, have thrived independently, the trend signals a significant shift in NetEase’s strategy.

The news arrives amidst ongoing debate regarding the latest Yakuza installment, Yakuza Kiwami 3, but the fate of Gang of Dragons overshadows such discussions. The cancellation could represent a considerable loss for fans eager for a spiritual successor to the beloved Yakuza series. The financial strain highlights the precarious nature of game development, even for industry veterans.

The potential demise of Gang of Dragons is a stark reminder that even the most promising projects can falter amid shifting financial landscapes. This development casts a long shadow – a testament to the volatile nature of the gaming industry.