Funding Withdrawal Puts Yakuza Creator’s New Game in Jeopardy

The latest project from former Yakuza producer Toshihiro Nagoshi appears to be facing significant challenges. Reports indicate that Chinese publisher NetEase intends to withdraw its financial support for Nagoshi Studio, which is currently working on the newly announced action-adventure game, Gang of Dragon, as it scales back its game development efforts.

Sources suggest that NetEase plans to cease funding Nagoshi Studio in May after discovering that completing Gang of Dragon—following years of development—would require an additional 7 billion yen (approximately $44 million). Nagoshi Studio has reportedly struggled to secure alternative funding for the project.

Nagoshi Studio was established in 2022 after Nagoshi and several key team members departed from Sega and Ryu Ga Gotoku Studio to create a new game company backed by NetEase. With over 30 years at Sega, Nagoshi contributed to iconic titles like Daytona USA, Shenmue, and Super Monkey Ball, but it was his work on the Yakuza series that truly elevated his profile in the gaming community. After serving as chief creative officer and creative director at Sega, he left the company in 2021 to launch Nagoshi Studio.

The studio unveiled Gang of Dragon at the 2025 Game Awards, showcasing a game that shares notable similarities with Sega’s Like A Dragon franchise. The game features Ma Dong-seok, also known as Don Lee, as Shin Ji-seong, a high-ranking member of a Korean crime syndicate based in Kabukicho. As Shin navigates the underworld, he forms deep connections that challenge his sense of purpose, reminiscent of the protagonists in the Yakuza series. Nagoshi Studio aims to set Gang of Dragon apart by emphasizing Shin’s formidable physical strength and ramped-up violence, featuring intense blade combat, gunplay, and high-octane vehicle action.

Currently, Gang of Dragon does not have a release date and is listed as “coming soon” on Steam.

In recent times, NetEase has paused game development and divested from several studios outside of China, including Worlds Untold, led by ex-BioWare creative Mac Walters; Jar of Sparks, founded by Xbox veteran Jerry Hook; Ouka Studio, known for Visions of Mana; Fantastic Pixel Castle, led by former Riot Games and Blizzard designer Greg “Ghostcrawler” Street; and Bad Brain Game Studios, which was developing a Stranger Things-inspired adventure game. NetEase also owns Grasshopper Manufacture and Quantic Dream.