Nagoshi Studio officially closes after NetEase withdraws its funding

[FairDos52]

Toshihiro Nagoshi's post Sega studio has officially closed. VGC reports that Nagoshi Studio, founded in 2021 by the creator of Yakuza, has been confirmed as dissolved in Japan's Official Gazette

The studio's debut game, Gang of Dragon, starring actor Ma Dong-seok, was announced in December and was said to be deep into development

Bloomberg reported that staff were told in March that NetEase would stop funding the studio, allegedly after it learned another ¥7 billion, about $44.4 million, would be needed to finish the game

NetEase has been cutting back its overseas development for some time. It has closed studios including T-Minus, FPC and Bad Brain, split from Worlds Untold and Jar of Sparks, and closed Ouka Studio in 2024. Grasshopper Manufacture, led by Goichi Suda, and GPTRACK50, led by Hiroyuki Kobayashi, are continuing without NetEase. There has been no statement from NetEase

Nagoshi is one of the most respected creators in Japanese games, so seeing his studio close before releasing anything is sad. It shows how quickly big publishers can change strategy. Hopefully Gang of Dragon or its team find a new home

Will Gang of Dragon ever be released? And what does NetEase's retreat mean for Japanese developers?

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