Toshihiro Nagoshi, best known as the creator of Yakuza / Like a Dragon, is suddenly facing a major threat to his post-Sega comeback. According to reporting that cites Bloomberg, NetEase Games plans to stop funding Nagoshi Studio in May, leaving the studio scrambling for new sponsorship and putting its debut title, Gang of Dragon, at serious risk. The project reportedly needs an additional ¥7 billion (about $44.4 million / £33.1 million) to reach the finish line—money that NetEase is no longer willing to provide.
What We Know: NetEase Funding Set to End in May
Multiple outlets reporting on Bloomberg’s claims say Nagoshi Studio employees were informed on March 6 that the studio is facing a pending shutdown scenario tied to a funding cutoff. A NetEase spokesperson reportedly confirmed to Bloomberg that the company will cease funding in May, a timeline that gives the team only a narrow window to secure alternative financing.
The core issue appears to be cost: NetEase reportedly learned that Gang of Dragon would require at least ¥7 billion more in budget to complete development. That figure has been widely repeated across coverage, framed as the key driver behind NetEase’s decision to pull back.
The consequences could be immediate and severe. GameRant reports there is concern Nagoshi Studio may have to shut down as soon as May if it can’t replace NetEase’s backing—an outcome that could effectively kill Gang of Dragon before release.
What Happens to Gang of Dragon If NetEase Walks Away?
The reporting suggests NetEase isn’t necessarily blocking the game from continuing—however, the terms sound difficult for a newly formed studio without a major backer.
According to Bloomberg coverage summarized by Eurogamer, Gematsu, TheGamer, and others, NetEase has told Nagoshi Studio it is free to continue development independently, but keeping the “assets and brand” would require paying “corresponding costs” (wording attributed to Bloomberg via Kotaku). Several reports also note that NetEase has not publicly disclosed the exit terms, leaving uncertainty around what it would cost for Nagoshi Studio to retain the work already completed.
Eurogamer further reports that the studio is in discussions with NetEase about acquiring the rights and branding for the company, as well as any work produced so far—including materials related to Gang of Dragon. The same reporting says Nagoshi Studio has been seeking new sponsorship without success so far.
In short: Gang of Dragon may still be salvageable, but the path forward appears to require (1) a new funding partner and (2) some form of settlement with NetEase to retain the project’s existing work and identity.
The Game: A High-Profile Reveal, a Darker Tone, and a Notable Lead Actor
Gang of Dragon was officially revealed at The Game Awards 2025 in December, and it quickly drew attention because it’s Nagoshi’s first announced project since leaving Sega and forming Nagoshi Studio.
While many details remain limited, the debut trailer described across coverage presented a gritty, violent crime-action tone. GameRant recounts a cinematic reveal featuring the main character being stabbed, fighting through a bar brawl against armed opponents, and taking part in swordplay and reckless driving sequences. The trailer’s closing logo reveal reportedly drew a loud reaction from the TGA audience.
Several outlets also highlight a major casting hook: Ma Dong-seok (also known as Don Lee) is attached as the game’s lead. TheGamer describes him as a “South Korean-American actor,” while Push Square and Kotaku refer to him as a Korean star, noting his profile from films like Train to Busan and Marvel’s Eternals.
Tonally, Kotaku characterizes Gang of Dragon as resembling Yakuza but with an “even more brutal and violent atmosphere,” while GameRant suggests it could appeal to fans of the series’ “darker roots.” Push Square also notes the game appeared to place a heavier emphasis on guns and vehicles, positioning it as a distinct take on the kind of crime drama Nagoshi is known for.
Platforms, Release Status, and the Studio Behind It
One of the biggest practical problems for fans is that Gang of Dragon still doesn’t have a release date.
GameRant states that no official release window has been announced by Nagoshi Studio. It also says the game appears to currently only be in development for PC, and is listed on Steam as “Coming soon.” (Other platforms “could be added later,” but nothing is confirmed.)
That platform uncertainty is reflected in how different outlets frame the project. Push Square refers to it as a “promising new PS5 game,” but details have not been include confirmation of a PlayStation release, nor any official platform list beyond the Steam/PC mention cited by GameRant. Based strictly on the available information, PC (Steam) is the only explicitly supported platform mentioned.
As for the studio itself: Nagoshi Studio was established under NetEase in November 2021 following Nagoshi’s departure from Ryu Ga Gotoku Studio and Sega, according to Gematsu. Eurogamer adds that when Nagoshi’s move was announced, the studio’s staff page showed several former Ryu Ga Gotoku Studio members also left Sega to join him, including Yakuza director and producer Daisuke Sato.
The Broader Context: NetEase’s Pullback From Global Game Investments
The situation around Gang of Dragon is also being framed as part of a wider strategic shift at NetEase.
Several reports describe NetEase as shrinking or refocusing its game development investments, with Gematsu stating the funding cut is part of efforts to “shrink game development activities.” GameRant similarly points to cost-cutting and a push to focus on a smaller selection of games, referencing earlier reports about internal budget reshuffling under CEO William Ding.
Multiple outlets list other studios affected by NetEase reductions. Eurogamer calls this “the latest in a line of western studio closures,” and specifically mentions Bad Brain Game Studios. Gematsu notes reductions that have included layoffs and studio closures globally, including Ouka Studios (identified there as the developer of Visions of Mana). TheGamer also lists several closures and separations (Bad Brain, FPC, T-Minus, Ouka Studio, and a split from Worlds Untold), framing Nagoshi Studio as the latest team caught in the same wave.
Kotaku adds additional context about NetEase’s earlier expansion and later retrenchment, describing a period of heavy investment in new studios and industry veterans, followed by funding cuts that have led to high-profile departures.
What Remains Unknown
Despite the volume of reporting, key details that would clarify Gang of Dragon’s future still aren’t public:
- Whether Nagoshi Studio will actually close in May, or if it can secure new funding before NetEase’s cutoff.
- The exact “exit terms”: how much it would cost to keep the Gang of Dragon assets, branding, and work completed under NetEase.
- Who owns the IP in practical terms if negotiations fail, and what happens to the project’s existing materials.
- Confirmed platforms beyond PC (Steam)—no official console versions are confirmed in the provided reporting.
- A release window, pricing, and monetization details, none of which have been announced.
- How far along development truly is, beyond the existence of a reveal trailer and reports that additional funding is needed to finish.
For now, the headline is straightforward: NetEase plans to stop funding Nagoshi Studio in May, and Gang of Dragon—a high-profile, Game Awards-revealed crime action game from the creator of Yakuza—may live or die based on whether the team can find a new backer and negotiate a workable path forward.
