Nagoshi's new game in jeopardy as netease cuts funding

Yakuza creator Toshihiro Nagoshi's upcoming game, Gang of Dragons, faces an uncertain future after Chinese tech giant NetEase signaled its intention to halt funding for the studio. The move throws the debut title from Nagoshi Studio, formed under NetEase in 2022, into serious doubt.

Netease pulls plug on nagoshi studio

Bloomberg reports that NetEase informed Nagoshi Studio employees of the impending financial cut-off starting in May, effectively signaling the potential closure of the studio. This decision comes as NetEase reshuffles its video game investments, a strategy already resulting in studio shutdowns and layoffs within the company.

The reported catalyst for the funding reduction is Gang of Dragons' need for an additional ¥7 billion (approximately $44.4 million) to reach completion. Nagoshi is reportedly seeking alternative investors to potentially buy out the studio, but efforts have so far proven unsuccessful.

The news is particularly jarring considering the game’s high-profile reveal at The Game Awards in December. The project, a return to the series that launched Nagoshi’s career at Ryu Ga Gotoku, had generated considerable excitement. Now, its fate hangs precariously in the balance.

This development underscores the volatile nature of the gaming industry and the risks associated with relying on external investment, even from major players. The future of Nagoshi Studio, and the potential for Gang of Dragons to ever see release, now appears highly unlikely.