Yakuza Creator’s Upcoming Game May Be Directorless After Funding Issues with NetEase

Nagoshi Studios, founded by Toshihiro Nagoshi and Daisuke Sato after their exit from Ryu Ga Gotoku Studio in 2021, appears to be facing significant challenges as it heads into a precarious state. Recently, Sato updated his Twitter/X bio to reflect his status as “ex-Nagoshi Studio,” which raises further concerns about the studio’s future.

The troubles for Nagoshi Studios first came to light in February 2025, when it was revealed that NetEase, the financial backer for their inaugural title, Gang of Dragon, was scaling back its investments in the gaming sector. This included a reduction in marketing funds for the anticipated crime saga. Despite these setbacks, there was hope for the studio when a new trailer for Gang of Dragon was showcased at The Game Awards last December.

However, the situation has since deteriorated. Reports from March indicated that NetEase planned to cease funding for Nagoshi Studios by May, while the studio was seeking an additional $44.4 million to complete and launch Gang of Dragon. Although there were hints that they might pursue alternative funding, the following months have offered little reassurance. An incident in April involving a YouTube channel that appeared to be deleted or banned caused a stir among fans, but it turned out to be a non-issue. More recently, the studio’s website has gone inactive, and Google now lists its offices as “permanently closed.”

With Sato’s recent announcement on social media, it seems increasingly unlikely that either Nagoshi Studios or Gang of Dragon will continue as planned. It would be beneficial for someone to clarify the situation and put an end to the speculation surrounding the studio’s fate.