News - Nagoshi Studio Faces Uncertainty as NetEase Withdraws Funding

Nagoshi Studio, the creative workshop founded by Yakuza series veteran Toshihiro Nagoshi, is facing a potential shutdown following reports that NetEase has decided to withdraw its financial support for the studio's high-profile debut game, Gang of Dragon. The announcement was made just three months after the game was revealed at The Game Awards and was reportedly communicated to employees by NetEase on Friday. Sources indicate that the funding cut will take effect in May, primarily due to the project needing an additional ¥7 billion (approximately $44.4 million) to complete development. Toshihiro Nagoshi, known for his dedication to delivering immersive gaming experiences, is actively seeking alternative financial solutions to continue the development of Gang of Dragon. However, these efforts have not yet borne fruit. Neither NetEase nor Nagoshi Studio has provided any official comment on the situation. Gang of Dragon, an action-packed game featuring renowned South Korean-American actor Ma Dong-seok, promised a compelling narrative experience that was highly anticipated by Nagoshi's extensive fanbase. In his first Western media engagement in 2023, Nagoshi pledged to meet his loyal fans' expectations with this new venture. This development is part of a broader trend involving NetEase's strategic retreat from its extensive international development initiatives. After investing heavily in various global gaming studios, the company is now opting to scale back, resulting in widespread disruptions. In addition to Nagoshi Studio, this shift has led to the closure or strategic disengagement from multiple promising studios. These include the shuttering of T-Minus and Vancouver-based Worlds Untold, the latter founded in collaboration with Mass Effect writer Mac Walters. Likewise, NetEase has parted ways with Seattle's Jar of Sparks, led by Xbox alum Jerry Hook, and Tokyo-based Ouka Studio, which was behind Visions of Mana under the Square Enix banner. Meanwhile, other Japanese entities such as Goichi Suda's Grasshopper Manufacture and GPTRACK50, created by Resident Evil luminary Hiroyuki Kobayashi, are advancing their release strategies independently of NetEase's backing. The gaming industry remains watchful as these developments unfold, impacting stakeholders globally and reconfiguring the landscape of international game creation.