Nagoshi Studio, the brainchild of Yakuza series creator Toshihiro Nagoshi, is reportedly on the brink of closure as publisher NetEase pulls funding for its highly anticipated title, Gang of Dragon. Just three months after its announcement at The Game Awards, the studio has been informed that it will lose financial backing due to a significant funding gap of approximately 7 billion ($44.4 million) needed to complete the project. The news has sent shockwaves through the gaming community, especially considering the star power behind Gang of Dragon, featuring South Korean-American actor Ma Dong-seok, known for his roles in Train to Busan and Marvels Eternals.

In a significant turn of events, Bad Brain Game Studios, a subsidiary of NetEase, has announced its impending shutdown due to unsuccessful attempts to secure a new partner for its ambitious project, Midnight Riders. Set to cease operations on November 17th, 2025, this closure not only marks the end of a promising venture but also raises questions about the sustainability of game studios in an increasingly competitive landscape. Studio head Sean Cooks expressed gratitude towards NetEase for their support during this challenging period, highlighting the extraordinary talent and passion of the team.