Yakuza Creator's New Game Gang of Dragon is suddenly in serious trouble

Yakuza creator Toshihiro Nagoshi's upcoming game, Gang of Dragonsmay have trouble getting it off the ground, as recently revealed information shows that backer NetEase looks poised to pull future funding soon in light of unexpected costs. The Yakuza franchise has provided fans with intense beat 'em up action and deep, crime-heavy stories for nearly 20 years, and while Nagoshi is no longer associated with the development studio behind his idea, his next game looks set to carry similar vibes.

Published by Sega, the first Yakuza the game launched on the PlayStation 2 in December 2005, with Nagoshi at the helm. He had worked for Sega since the late 1980s, and by 2000 had become CEO of one of its development studios, Amusement Vision, later renamed New Entertainment R&D. Nagoshi left Sega in 2021, before the release of Like a dragon: Ishinand founded Nagoshi Studio shortly thereafter, but his mark on Yakuza the series has been felt by the fans. His new studio appears to be nearing completion of its first game, Gaccording to Dragonwhich looks to continue with quite a few Yakuzas historic legacy, but new financial problems now cast the upcoming release in doubt.

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Gang of Dragon really looks like the Yakuza series with a Grand Theft Auto Makeover

Yakuza creator Toshihiro Nagoshi's new video game, Gang of Dragon, returns to the franchise's roots but also gives it a GTA makeover.

NetEase may draw funding from Yakuza Creator's Gang of Dragon

the gang of dragon yakuza creators reveal trailer tga 2025

There are now concerns that Nagoshi Studio may have to close as soon as May due to financial problems, which could kill Gang of Dragons before it ever sees the light of day. A new report from Bloomberg states that NetEase is getting ready to pull the plug on its financial backing of the studio in light of Gang of Dragons still needs an estimated ¥7 billion, or roughly US$44.36 million, to complete. NetEase's financial support provides Yakuza creator's studio with his primary income stream, and Nagoshi is reportedly looking for other sources of financial support, though there are no reports to suggest he's had any success.

If another source of revenue cannot be secured before its first game is ready for release, it would likely lead to the studio closing and the game being cancelled. It would be a huge disappointment to fans who were drawn in by the reveal of Gang of Dragons at The Game Awards 2025 in December. The first trailer, which is only two minutes long, showed gritty realism in its cinematic presentation, including the main character getting stabbed, fighting his way out of a barroom brawl bare-handed against three men armed with guns, and engaging in swordplay and reckless driving sequences. The reveal of Nagoshi Studio's logo after the trailer's opening scene also elicited a large round of applause from the audience, including a voice that could be heard excitedly shouting “Yes! Yes!” over the rest of the cheering and clapping.

The upcoming game may have a special appeal to fans of Yakuza the darker roots of the franchise, as more modern games such as Like a Dragon: Pirate Yakuza in Hawaiis commitment to humor has earned Ryu Ga Gotoku Studio much praise, but has lost some fans in the mix due to its greater reliance on a sillier, more light-hearted tone. While the first trailer makes it look like the development of Gang of Dragons has come a long way, no official release window has been announced by Nagoshi Studio. It currently appears to only be in development for PC, though other platforms may be added later, and it's only listed on Steam as “Coming Soon.”

This isn't the first time NetEase's cost-cutting measures have put the future of unreleased games in jeopardy. In early 2025, CEO William Ding's efforts to focus the China-based company's efforts on a smaller selection of games led to some budget reshuffles that put many developers on edge, especially those based outside the home country. There were even reports hitting the 2024 hero shooter Marvel Rivals was canceled almost before it reached completion due to the high cost of the rights to its popular superheroes and villains, which are currently owned by Disney.