Yakuza Creator's New Game Gang of Dragon is Suddenly in Serious Trouble

Yakuza creator Toshihiro Nagoshi’s upcoming game, Gang of Dragon, could have trouble making it to release, as recently revealed information shows that backer NetEase looks poised to soon pull future funding in light of unexpected costs. The Yakuza franchise has been providing fans with intense beat ’em up action and deep, crime-heavy stories for nearly 20 years, and while Nagoshi is no longer associated with the development studio behind his brainchild, his next game looks to carry similar vibes.

Published by Sega, the first Yakuza game launched on PlayStation 2 in December 2005, with Nagoshi at its helm. He had been working for Sega since the late 1980s, and by 2000, he had become CEO of one of its development studios, Amusement Vision, which was later rebranded as New Entertainment R&D. Nagoshi left Sega in 2021, prior to the release of Like a Dragon: Ishin, and founded Nagoshi Studio shortly thereafter, but his mark on the Yakuza series has been felt by fans. His new studio seems to be nearing completion of its first game, Gang of Dragon, which looks like it carries on a lot of Yakuza‘s storied legacy, but new financial concerns now throw that upcoming release into doubt.

Gang of Dragon Really Looks Like the Yakuza Series with a Grand Theft Auto Makeover

Yakuza creator Toshihiro Nagoshi’s new video game, Gang of Dragon, hails back to the roots of the series but also gives it a GTA makeover.

NetEase May Pull Funding from Yakuza Creator’s Gang of Dragon

gang of dragon yakuza creator reveal trailer tga 2025

There is now concern that Nagoshi Studio may have to shut down as soon as May over financial issues, which could kill off Gang of Dragon before it ever sees the light of day. A new report from Bloomberg states that NetEase is getting ready to pull the plug on its financial backing of the studio in light of Gang of Dragon still needing an estimated 7 billion yen, or roughly $44.36 million USD, to be completed. NetEase’s financial support provides the Yakuza creator’s studio with its primary stream of income, and Nagoshi is reportedly looking for other sources of financial backing, though there are no reports indicating he has had any success.

If another source of revenue can’t be secured before its first game is ready for release, it would likely result in the studio’s closure and the game’s cancellation. That would be a big disappointment for fans who were drawn in by the reveal of Gang of Dragon at The Game Awards 2025 in December. The first trailer, which runs just shy of two minutes long, showed gritty realism in its cinematic presentation, including the main character being stabbed, bare-handedly fighting his way out of a barroom brawl against three men armed with guns, and engaging in swordplay and reckless driving sequences. The reveal of the Nagoshi Studios logo after the trailer’s opening scene also elicited a big burst of applause from the crowd, including one voice that could excitedly be heard shouting “Yes! Yes!” over the rest of the cheering and clapping.

The upcoming game could hold a special appeal to fans of the Yakuza franchise’s darker roots, as more modern games such as Like a Dragon: Pirate Yakuza in Hawaii‘s commitment to humor have earned a lot of praise for Ryu Ga Gotoku Studio, but have lost some fans in the shuffle due to its heavier reliance on a sillier, more lighthearted tone. While the first trailer makes it look as though development of Gang of Dragon has come a long way, no official release window has been announced by Nagoshi Studio. It appears to currently only be in development for PC, though other platforms could be added later, and it is only listed on Steam as “Coming soon.”

This isn’t the first time that NetEase’s cost-cutting measures have thrown the future of unreleased games into jeopardy. In early 2025, CEO William Ding’s efforts to focus the China-based company’s efforts on a smaller selection of games led to some budgetary reshuffling that put a lot of developers on edge, particularly those based outside its home country. There were even reports that hit 2024 hero shooter Marvel Rivals was almost canceled before it reached completion over the high cost of rights to its popular superheroes and villains, which are currently owned by Disney.