NetEase Pulling Funding From Nagoshi Studio, Future Uncertain

A new report suggests that NetEase has informed staff at Nagoshi Studio that it plans to cease all funding for the developer, casting uncertainty over the studio’s future.

The studio is led by Toshihiro Nagoshi, best known as the creator of the Yakuza / Like a Dragon franchise.

Funding Reportedly Cut Off

According to the information circulating internally, NetEase has notified employees that financial support for Nagoshi Studio will be ending. The company is reportedly open to negotiations, but only under specific circumstances.

Sources indicate that NetEase would be willing to discuss options if the studio is able to fund itself moving forward, essentially allowing it to operate independently if it can secure the necessary resources.

However, without continued backing from NetEase, the path forward for the studio remains unclear.

A Studio Built Around a Legendary Developer

Nagoshi Studio was established after Toshihiro Nagoshi departed Sega in 2021 following a long career there.

During his time at Sega, Nagoshi became one of the most recognizable figures in Japanese game development thanks to his work on the Yakuza series, which has since grown into a global franchise under the Like a Dragon branding.

NetEase later backed the creation of Nagoshi Studio as part of its strategy to expand its global development footprint by partnering with well-known creators.

What Happens Next?

At the moment, there has been no official announcement from either NetEase or Nagoshi Studio regarding the report.

If the funding withdrawal is confirmed, the studio may need to secure new investment, find a publishing partner, or restructure operations to continue developing projects.

Given Toshihiro Nagoshi’s reputation in the industry and the influence of the Yakuza franchise, many will be watching closely to see whether the studio can find a path forward.