Market Chatter: Netease to End Funding for Nagoshi Studio as Gaming Investments Shrink

MT Newswires Live03-09

Netease Inc (NTES) will stop funding Nagoshi Studio, the development company led by Yakuza series creator Toshihiro Nagoshi, as the Chinese gaming firm scales back its game development investments, Bloomberg reported on Mar. 7.

Employees at Nagoshi Studio were informed of the decision on Friday, people familiar with the matter told the publication.

A NetEase spokesperson confirmed to Bloomberg that the company will stop financing the studio starting in May.

The report said Nagoshi Studio unveiled a teaser in December for its first game, Gang of Dragon. However, NetEase decided to stop funding after determining the project would require at least 7 billion Japanese Yen ($44.4 million) more to complete, a Bloomberg source said.

Nagoshi is now seeking new sponsors for the project, though none have been secured so far, the report added.

NetEase did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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