The gaming community is buzzing with concern as Nagoshi Studio, founded by Yakuza series creator Toshihiro Nagoshi, faces potential closure after publisher NetEase announced it would withdraw funding for the studio’s debut title, Gang of Dragon. Just three months after its unveiling at The Game Awards, the project is reportedly short of 7 billion ($44.4 million) needed to reach completion, prompting NetEase’s drastic decision. Nagoshi, known for his innovative contributions to the gaming industry, is now in search of alternative funding sources to keep the project alive.

In a significant turn of events for the gaming industry, Bad Brain Game Studios, a subsidiary of NetEase, has announced its impending closure after failing to secure a new partner for its ambitious project, Midnight Riders. The studio, which was established in 2023 and comprised former Ubisoft Toronto staff, will cease operations on November 17th, 2025. This closure not only highlights the challenges faced by game developers in securing partnerships but also raises questions about the sustainability of studios in an increasingly competitive market.

In a surprising turn of events, MMO veteran Rich Vogel has confirmed the closure of his studio, T-Minus Zero Entertainment, just a year after its formation under NetEase Games. The studio was poised to develop a third-person sci-fi multiplayer action game, but despite initial support and a playable demo, the current market conditions proved too challenging for securing necessary funding. Vogel, who has an impressive track record with titles like Ultima Online and Star Wars: Galaxies, expressed gratitude towards NetEase for their support during the studio’s brief existence.