Nagoshi Studio Reportedly Faces Closure After NetEase Funding Pullback

On March 7, 2026, VGC reported, citing Bloomberg, that Nagoshi Studio may be heading toward closure after NetEase allegedly told staff it plans to cut funding for Gang of Dragon in May. The project is the debut title from Toshihiro Nagoshi's new studio, which only unveiled the game three months ago.

The reported problem is not a minor scheduling slip. According to VGC's summary of the Bloomberg report, Gang of Dragon would now require an additional ¥7 billion ($44.4 million) to reach completion. Nagoshi is said to be looking for outside funding to keep development alive, but VGC says those efforts have not produced a solution so far. Neither NetEase nor Nagoshi Studio had publicly responded at the time of publication.

The timing makes the report especially notable. Gang of Dragon was introduced at The Game Awards in December 2025 and was described as being deep into development. It was also positioned as a star-backed action game featuring Ma Dong-seok, which gave the impression that the studio's first release was already on a stable track. If the report is accurate, that public positioning and the project's financial reality have now diverged sharply.

Key points

VGC says Bloomberg reported that NetEase plans to stop funding Gang of Dragon in May 2026.

The project reportedly needs another ¥7 billion ($44.4 million) to be finished.

Gang of Dragon was announced in December 2025 at The Game Awards.

Neither NetEase nor Nagoshi Studio had issued a public response when the story was published.

The report also fits a broader pattern. VGC says NetEase has been scaling back its international game development footprint, with closures or separations involving several studios across multiple regions. For players, the immediate takeaway is that Gang of Dragon has not been officially canceled, but as of March 7, 2026, the central issue appears to be financing rather than a normal launch window adjustment.