Yes: reporting points to a serious funding risk for GANG OF DRAGON, the first game announced by Toshihiro Nagoshi’s studio. In March 2026, Gematsu reported that NetEase would stop funding Nagoshi Studio in May and that at least ¥7 billion (about $44.4 million) more was estimated to be needed to finish the game. That does not establish that the game was cancelled—or that it continued after the reported cutoff.
Which game is at the center of the report?
The project is GANG OF DRAGON, announced in December 2025 as the first game from Nagoshi Studio. Before the reveal, 2025 coverage referred to Toshihiro Nagoshi’s project without naming it. Nagoshi is known for his work on the Yakuza / Like a Dragon series; this is a new project, not another confirmed entry in that franchise.
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Nagoshi Studio is a Tokyo developer established under NetEase Games. When NetEase announced the studio on January 24, 2022, it named Nagoshi representative director and CEO and said the studio would focus on globally released console titles. That was the studio’s stated remit at launch, not confirmation of its present ownership or operating status. NetEase’s announcement.
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What has been reported about the funding risk?
On March 7, 2026, Gematsu reported that a NetEase spokesperson confirmed the company planned to stop funding Nagoshi Studio in May 2026. The same report said at least ¥7 billion (about $44.4 million) in additional funding would be needed to complete GANG OF DRAGON. That amount is a reported estimate attributed to people familiar with the situation, not an official budget disclosure. Gematsu’s report.
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Gematsu also reported that Nagoshi was seeking new sponsors and that the studio and NetEase were discussing how to handle materials already developed for the game. Those are reported developments, not a public statement confirming the project’s eventual status.
How the story developed
- January 24, 2022: NetEase announced Nagoshi Studio in Tokyo as a wholly owned NetEase Games subsidiary, with Nagoshi as representative director and CEO. NetEase’s announcement.
- February 21, 2025: Kotaku reported that the then-unnamed project had entered full production in 2024. It described a team of about 80 people, an approximate figure reported by Kotaku rather than an official headcount. Kotaku also said Nagoshi had told Famitsu he was considering what content to cut to keep the project on track. Its account of NetEase limiting new funding and time for Japanese projects was attributed to Bloomberg. Kotaku’s report.
- December 2025: Nagoshi Studio announced GANG OF DRAGON as its first game.
- March 7, 2026: Gematsu reported NetEase’s planned May funding cutoff and the additional funding estimate for completion. Gematsu’s report.
Does the funding report mean the game was cancelled?
No cancellation is established by these reports. A planned end to NetEase funding creates a substantial risk, but it does not by itself show whether replacement financing was secured, whether the project changed hands, or whether development stopped. The sources cited here do not establish what happened after the reported May 2026 cutoff, so the game’s current development and funding status remain unclear.
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What is confirmed—and what is not
- Established: GANG OF DRAGON was announced as Nagoshi Studio’s first game in December 2025.
- Reported: NetEase planned to stop funding the studio in May 2026, and the game needed at least ¥7 billion more to complete, according to Gematsu’s March 2026 account.
- Not established: Whether Nagoshi found replacement funding, whether the game remains in active development, or whether Nagoshi Studio still operates under NetEase or independently.
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