Nagoshi Studio, founded by renowned producer Toshihiro Nagoshi (creator of the "Like a Dragon" series) after his departure from SEGA, is reportedly facing a potential closure. According to Bloomberg, investor NetEase has informed employees that it will cease funding the studio's debut title, "Gang of Dragon," in May 2026, casting uncertainty over the entire development project.
The report indicates that Nagoshi Studio employees were notified on Friday of NetEase's decision to terminate financial support for the project. The decision was reportedly made after NetEase learned that "Gang of Dragon" would require an additional 7 billion JPY to complete its development, leading to their assessment and subsequent withdrawal of investment. Neither NetEase nor Nagoshi Studio has publicly commented on these reports.
"Gang of Dragon" was officially unveiled at The Game Awards in December 2025, with officials stating at the time that the game was "in deep development." The title is an action game and features Korean-American actor Ma Dong-seok (Don Lee) in a main role. Ma Dong-seok is widely known for his roles in "Train to Busan," "The Outlaws" film series, and Marvel's "Eternals," and his involvement in the game had garnered significant attention from players.
Faced with the sudden halt in funding, Toshihiro Nagoshi is reportedly seeking new investment sources to continue the project's development. However, these efforts have yet to yield results, casting a shadow over the studio's future.
In fact, Nagoshi Studio's predicament is not an isolated incident but rather part of NetEase's recent adjustments to its global game investment strategy. In previous years, NetEase had heavily invested in and established numerous overseas development teams, but it has recently begun scaling back its international game development footprint, impacting several studios.
Previously, NetEase had already shut down multiple teams, including T-Minus, FPC, and Bad Brain. It also parted ways with Worlds Untold, a Vancouver-based studio founded by "Mass Effect" writer Mac Walters, and ceased support for Seattle studio Jar of Sparks. Furthermore, Tokyo's Sakura Studio, responsible for "Visions of Mana," ceased operations in 2024.
Amidst these industry shifts, whether Toshihiro Nagoshi can secure new funding and partners for "Gang of Dragon" and keep Nagoshi Studio operational remains to be seen.
via： Bloomberg