NetEase Games to stop funding Nagoshi Studio in May

NetEase Games will cut off funding to Toshihiro Nagoshi-led Nagoshi Studio in May as part of its efforts to shrink game development activities, a company spokesperson confirmed to Bloomberg.

Nagoshi Studio was established under NetEase Games in November 2021 following Nagoshi’s departure from Ryu Ga Gotoku Studio and SEGA.

According to “people familiar with the situation,” Nagoshi Studio employees were told of the decision to cut funding on March 6.

The move is part of a larger series of reductions by NetEase Games, which have resulted in layoffs and studio closures around the world, including Visions of Mana developer Ouka Studios.

Nagoshi Studio announced its first game, GANG OF DRAGON, in December 2025 at The Game Awards 2025.

The decision to cut funding reportedly came after NetEase Games discovered additional funding of at least seven billion yen (approx. $44.4 million) would be needed to finish the project.

Nagoshi is said to be seeking new sponsors without any current success. The studio itself is said to be in discussions with NetEase Games on how to handle the game materials already developed.

NetEase Games has reportedly told Nagoshi Studio that it is free to go independent, but can only keep the assets and brand if it is able to pay its way out.

The NetEase spokesperson did not share any information on exit terms for Nagoshi Studio.