NetEase to Stop Funding Nagoshi Studio as It Cuts Back on Gaming

March 7, 2026 - 20:26

In a significant move reflecting its scaled-back ambitions, Chinese gaming giant NetEase Inc. has decided to terminate financial support for Nagoshi Studio, the independent team founded by renowned game director Toshihiro Nagoshi. The creator behind Sega's iconic Yakuza (now Like a Dragon) franchise established the studio with NetEase's backing in 2021.

This decision marks Nagoshi Studio as the latest casualty in NetEase's broader strategic pivot away from extensive in-house and external game development. The company is implementing a widespread contraction of its gaming activities, shifting focus and resources amidst a challenging global market and increased domestic regulatory scrutiny.

The funding halt raises immediate questions about the future operations and projects currently in development at Nagoshi Studio. While the studio's acclaimed talent remains, the loss of its primary financial backer necessitates a search for new investment or publishing partners to continue its work. The industry is watching closely to see if and how the studio, a high-profile bet for NetEase's previous global expansion efforts, will navigate this sudden withdrawal of support. This move underscores the volatile nature of game development financing and the recalculations major publishers are making worldwide.