Netease Plans to Cease Financial Support for Nagoshi Studio in May, Project's Future Uncertain
Toshihiro Nagoshi's new venture, Gang of Dragon, is reportedly teetering on the brink due to NetEase's impending withdrawal of funding. Sources indicate that the Chinese publisher intends to cut off financial support to Nagoshi Studio starting in May. This decision has plunged the game's development into serious jeopardy, with concerns rising about the studio's potential closure.
The move by NetEase is part of a broader shift away from certain game development investments. Nagoshi Studio, which receives its primary income from NetEase, is now actively seeking alternative financial backing. Reports suggest Nagoshi is attempting to negotiate terms to buy out NetEase's stake and retain development assets, but has met with little success so far. The studio was reportedly informed of NetEase's decision on a Friday.
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Game's Identity and Development
'Gang of Dragon' is described as an action-adventure title that appears to echo the style of Nagoshi's previous work on the 'Yakuza' (now 'Like a Dragon') series, incorporating elements reminiscent of 'Grand Theft Auto.' The game made its debut during The Game Awards last year.
NetEase's Position and Studio's Options
NetEase has confirmed its intention to stop funding the studio from May. However, the publisher reportedly allows Nagoshi Studio to continue development independently, provided it can shoulder the costs associated with retaining the project's assets and branding. This implies a potential need for a significant financial infusion to cover development expenses, with one report suggesting an additional $44 million might be required to complete the game.
Studio's Search for New Backing
Nagoshi Studio is in a race against time to secure new investors. The studio's formation in 2021 saw NetEase and Tencent Holdings competing for stakes, with NetEase ultimately becoming the backer. The withdrawal of this crucial funding stream has left the studio scrambling. There are no public reports detailing any successful acquisition of new sponsorship or investment for 'Gang of Dragon' thus far.
Background
Toshihiro Nagoshi is widely recognized for his pivotal role in creating the 'Yakuza' franchise, a series known for its intricate crime narratives and beat 'em up gameplay. After a long tenure at Sega, he departed to establish Nagoshi Studio, with 'Gang of Dragon' slated to be its debut title. Actor Ma Dong-seok, known for his roles in 'Train to Busan' and Marvel's 'Eternals,' is associated with the project.