NetEase Games to stop funding to Nagoshi Studio in May

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NetEase Games is ending its financial support for Nagoshi Studio, led by Toshihiro Nagoshi, in May. This is part of a broader move by the company to reduce its game development operations, according to a Bloomberg report.

So, after leaving Ryu Ga Gotoku Studio and SEGA, Toshihiro Nagoshi started a new studio – Nagoshi Studio – and it’s actually under NetEase Games. That happened back in November 2021, which is pretty exciting for what they’ll create next!

Employees at Nagoshi Studio learned about the funding cuts on March 6, sources say.

This change is one of many cost-cutting measures NetEase Games has been taking recently, leading to job losses and the shutdown of some of its studios, like Ouka Studios, the team behind Visions of Mana.

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

NetEase Games apparently decided to stop funding the project after realizing it would require at least another seven billion yen – about $44.4 million – to complete it.

Reports suggest that Nagoshi is trying to find new sponsors, but hasn’t had any luck so far. Meanwhile, the studio is reportedly talking with NetEase about what to do with the game content they’ve already created.

Sources say NetEase Games has offered Nagoshi Studio independence, but with a condition: the studio can only retain its games and branding if it can financially cover the cost of leaving.

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

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2026-03-07 18:16