NetEase Games to stop funding 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 larger move by the company to reduce its game development efforts, according to a Bloomberg report.

In November 2021, after leaving Ryu Ga Gotoku Studio and SEGA, Nagoshi founded Nagoshi Studio under the umbrella of NetEase Games.

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

This decision is one of many cost-cutting measures NetEase Games has been taking recently, leading to job losses and the shutdown of several studios, including 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 decided to stop funding the project after realizing it would require at least an additional seven billion yen—around $44.4 million—to complete it.

So, I’m hearing that Nagoshi is trying to find new sponsors for the project, but it’s not going well so far. Apparently, the studio is also talking with NetEase about what to do with everything they’ve already built for the game. It’s a bit of a messy situation, honestly.

Sources say NetEase Games has offered Nagoshi Studio independence, but with a condition: the studio can only retain its existing games and branding if it can financially buy its way out of the current agreement.

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

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2026-03-07 18:31