During The 2025 Game Awards, Yakuza and Like A Dragon veteran Toshihiro Nagoshi’s Nagoshi Studio unveiled its first game, Gang of Dragon. However, a new report suggests that the future of both the game and the studio are in question following NetEase’s decision to pull its funding from Nagoshi Studio.
According to Bloomberg, the decision was made in part because Nagoshi Studio will need approximately $44.4 million to complete Gang of Dragon’s development. NetEase also told Bloomberg that it will stop financing Nagoshi Studio in May.
Nagoshi is said to have come up empty so far in its search to find a new publishing partner, and a deal with NetEase to cover the game assets already created has yet to be closed. The report notes that “NetEase is only open to negotiations if the studio can pay its way out,” and that it will have to pay “the corresponding costs if it wants to keep the assets or brand.”
For now, that leaves the fate of Gang of Dragon up in the air. The early footage shown at The Game Awards looked very close to Nagoshi’s work on the Yakuza franchise. South Korean actor Ma Dong-seok lent his voice and likeness to Gang of Dragon’s leading role, but not many details about the game have been released.
Near the end of 2025, NetEase closed down Fantastic Pixel Castle, an MMO studio founded by former World of Warcraft lead system designer Greg Street. And NetEase isn’t the only company that may be cutting back on its video game investments. Chinese publisher Tencent has come under increased scrutiny by the Trump administration, which may take steps to force the company to divest its stake in the U.S. gaming market.