Yakuza Creator May Run Out of Funds to Complete Game

by Sophie Laurent March 7, 2026

written by Sophie Laurent March 7, 2026

Key Takeaways

Created with AI - we're still experimenting, so apologies if it misses the mark

NetEase, the Chinese firm that financed Toshihiro Nagoshis new studio, has declined further funding for his upcoming game, Gang of Dragon, leaving its future uncertain.
The game requires an additional $44.4 million to complete development and Nagoshi Studio is currently seeking alternative financing to cover these costs.
This situation arises from a broader shift in NetEases strategy, where the company is curtailing investments outside China, including Japan, and withdrawing from the country.
Several studios, including Nagoshi Studio, are being forced to seek alternative financing to complete their projects due to this change in NetEases strategy.

Toshihiro Nagoshi, creator of the Yakuza series, left SEGA in late 2021 to found Nagoshi Studio, financially backed by the Chinese firm NetEase. Four years later, at the Game Awards 2025, Nagoshi unveiled Gang of Dragon, a game reminiscent of Yakuza. However, the future of Gang of Dragon is uncertain, as NetEase has declined further funding. Nagoshi Studio may be forced to shut down, as the game requires an additional 7 billion yen (approximately $44.4 million) to complete development, and the studio has so far been unable to secure it. Bloomberg reported that Nagoshi Studio employees were informed that NetEase would no longer fund the game, corroborating the $44.4 million figure. Sources indicate that Nagoshi is seeking alternative financing, so far without success, to complete the game. While this does not confirm cancellation, it casts doubt on the project’s future. Neither NetEase nor Nagoshi Studio has commented on these reports. NetEase’s closure of its Marvel Rivals team in Seattle and Ouka Studios in Japan in February 2025 fueled speculation about the future of Nagoshi Studio.

Funding Uncertain for Gang of Dragon as NetEase Shifts Strategy, Nagoshi Studio Seeks Independent Finance

To continue Gang of Dragon, NetEase is requiring Nagoshi Studio to secure independent funding to cover remaining development costs, including purchasing the intellectual property and all developed assets. This situation arises from a broader shift in NetEase’s strategy. Following a period of investment in producers outside China, particularly in Japan, the company has begun curtailing these investments and withdrawing from Japan, compelling several studios to seek alternative financing to complete their projects. Nagoshi Studio faces this challenge as well.

In Case You Missed It

In our ongoing celebration of diversity and representation in gaming, we invite you to join Jonathan Dubinski’s insightful live podcast “On Their Sights”, happening this Friday from 3 PM to 5 PM at Rua Barbalha, 417 – Lapa, São Paulo – SP. Dubinski shines a light on the compelling initiative “Na Mira Delas”, amplifying women’s voices within gaming and creative industries On Their Sights: Live Podcast Highlights Female Protagonism in Gaming Universe. Meanwhile, Carlos Mendoza has sparked our curiosity with his recent post “Xbox Game Pass May Soon Receive One of the Biggest RPGs in Recent Years”. Rumors are circulating about an exciting announcement for Xbox Game Pass users that might just involve one of the biggest RPGs lately Xbox Game Pass May Soon Receive One of the Biggest RPGs in Recent Years. Lastly, Sophie Laurent takes a deep dive into the complex ending sequence of Resident Evil: Requiem in her latest post. She explores the consequences of releasing or destroying Elpis, a powerful antiviral agent capable of curing biological infections What is the Ending of Resident Evil: Requiem?.