Yakuza fans cannot catch a break with bad news, and this time it involves NetEase cutting off funding for ex-Yakuza Director’s new game, Gang of Dragon. For the past few years, NetEase has been collecting major game industry heads.
But recently, the Chinese videogame giant started dialing back on its several investments. This has led to a lot of layoffs with studios shutting down in the industry recently. The once hopeful fanbase that was eager to see their favorite game directors get funded is now severely disappointed.
Toshihiro Nagoshi, the former head of the Yakuza series at SEGA’s Ryu Ga Gotoku studio, is the newest victim of NetEase’s cost-cutting decisions.
Reason for cutting off Gang of Dragon’s funding
After leaving SEGA, director Nagoshi had gathered with him an immense amount of reputation that preceded a decade-long franchise, the Yakuza series, or as it is called, ‘Ryu ga Gotoku’ in Japan. The fanbase was delighted to learn in 2022 that he had founded a new studio named ‘Nagoshi Studio.’
Nagoshi was quick to credit NetEase for helping fund their newest game, but it was still a while before we could see what he was working on. His game, Gang of Dragon, finally made an appearance in last year’s Game Awards, generating deep appreciation from his regular fans.

This new title seems to be following his usual design philosophy of deep gang violence drama, set in an open world like environment with impressive and realistic visuals. According to new reports, Gang of Dragon still needs about $44.4 million to complete development, and this is why NetEase is cutting off ties.
Yakuza fans cannot catch a break
Reactions from users online, especially fans of Toshihiro Nagoshi’s games, are exactly what we would expect. The fanbase recently went through a slew of disappointing news with controversies around the Yakuza franchise. It seems like they still cannot catch a break.
Some did not waste time in calling out NetEase for throwing Nagoshi Studio in the dark just because the funding exceeded their plans. While also criticizing the director for previous statements supporting NetEase’s decisions.
According to recent developments, Nagoshi is currently looking to separate avenues to secure funds, but has been largely unsuccessful in their attempts so far. NetEase has agreed to allow the studio to go independent with the project, and is currently in discussion about how to handle the whole situation.
