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NetEase Cuts Funding, Threatens Nagoshi Studio's Future

3/7/2026

46 4 Full Breakdown

Summary

Story summary

NetEase will stop funding Toshihiro Nagoshi, founder of Nagoshi Studio, in May, risking its closure.
Employees were informed of the decision on March 6.
Nagoshi Studio, formed after Toshihiro Nagoshi left Sega, needs ¥7 billion ($44.4 million) to complete its debut game Gang of Dragon.
NetEase's funding cut reflects a broader plan to reduce international game development, while Nagoshi Studio may negotiate to retain rights and assets.

History

Historical Context

In 2020, the video game industry experienced a funding surge, with global investments reaching $7 billion, reflecting heightened interest. However, NetEase's decision to cut funding for Toshihiro Nagoshi's studio signals a shift as companies reassess international projects amid economic pressures. This trend echoes past challenges faced by major firms like Sega, potentially limiting innovation in game development.

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Story summary

NetEase will stop funding Toshihiro Nagoshi, founder of Nagoshi Studio, in May, risking its closure.
Employees were informed of the decision on March 6.
Nagoshi Studio, formed after Toshihiro Nagoshi left Sega, needs ¥7 billion ($44.4 million) to complete its debut game Gang of Dragon.
NetEase's funding cut reflects a broader plan to reduce international game development, while Nagoshi Studio may negotiate to retain rights and assets.

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