NetEase Inc. will cease providing funding to Nagoshi Studio Inc., the development company led by Toshihiro Nagoshi, known for creating the Yakuza franchise. The decision, part of NetEase's broader strategy to reduce its game development investments, will take effect in May. Employees of Nagoshi Studio were informed on Friday. This development impacts the future of the studio's debut game, Gang of Dragon, which was revealed in December.
The cessation of NetEase's funding, effective in May, stems from a determination that Gang of Dragon required an additional ¥7 billion (approximately $44.4 million) for completion, and is expected to result in Nagoshi Studio's closure.
Funding Cessation Details
NetEase has confirmed its intention to stop financing Nagoshi Studio starting in May. This action follows NetEase's determination that Gang of Dragon required an additional ¥7 billion, approximately $44.4 million, for completion. The cessation of funding is anticipated to result in the closure of Nagoshi Studio.
Background of Nagoshi Studio
Nagoshi Studio was established in 2022 under NetEase, following Toshihiro Nagoshi's departure from Ryu Ga Gotoku. Nagoshi is recognized as the creator of the Yakuza series. The studio's debut title, Gang of Dragon, shares visual similarities with the Yakuza series and was first revealed at The Game Awards in December.
Broader Corporate Strategy and Studio Response
The halt in funding is consistent with NetEase's strategic shift to scale back its video game investments, a process that has previously led to other studio closures and layoffs within the company.
In response to the funding cessation, Toshihiro Nagoshi is reportedly attempting to secure new investors to acquire the studio. As of reports, these efforts have not yet been successful.