The new Toshihiro Nagoshi game could be cancelled: NetEase cuts funding for Gang of Dragon

The project of the Yakuza creator is going through a complicated moment after losing financial support.

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The future of Dragon’s Gang, the new project led by Toshihiro Nagoshi, is going through a delicate moment. The game, presented during The Game Awards 2025, had generated great expectation among the creator’s fans of the Yakuza saga, but new information indicates that its development could be in danger.

According to data published by Bloomberg, NetEase has decided to cut funding for the project, a measure that puts the game’s continuity in doubt if new investors do not appear to allow development to continue.

Nagoshi’s project could run out of funding by May 2026

According to the report, the decision was communicated to Nagoshi Studio employees on March 6, 2026, and a NetEase spokesperson later confirmed that current funding will end in May 2026.

The main problem would be the need to obtain additional funds to complete development. According to sources close to the studio, the team requested around 7 billion yen (approximately 38 million euros) in additional funding to finish the game. Without this extra investment, the project cannot continue in its current state. NetEase has allowed Nagoshi Studio to continue working on the game on its own, which means the team could try to find new partners or external funding to complete the project.

Toshihiro Nagoshi founded his own studio in 2021 after leaving SEGA, where he had spent decades working on sagas like Yakuza. At the time, companies like NetEase and Tencent were heavily investing in Japanese talent to expand their international presence.

NetEase’s strategy seems to have changed in recent years. The company has reduced some of its investments in external studios, which has already affected other projects within its global expansion plan.

If Nagoshi Studio fails to secure new funding in the coming months, Dragon’s Gang could end up being canceled before it even has a chance to be shown to the public again.