Yakuza Creator’s Upcoming Game May Face Development Challenges

Current Landscape for Nagoshi Studio’s First Game

Nagoshi Studio’s inaugural project may face significant reductions due to budgetary limits imposed by NetEase.
The lack of extra funding for development and marketing could endanger the game’s overall success.
NetEase’s pivot towards profitable titles raises doubts about Nagoshi’s project meeting commercial expectations.

Toshihiro Nagoshi, the visionary behind the acclaimed Yakuza series, may be facing challenges with his next project at Nagoshi Studio. Recent reports suggest that NetEase—a key player in gaming publishing—has initiated budgetary cuts, impacting studios under its umbrella, including Nagoshi’s venture. After stepping away from the Yakuza series post the 2020 release of Yakuza: Like a Dragon, the move to NetEase might not prove as beneficial as anticipated.

In October 2021, Nagoshi announced his departure from Sega and its associated Ryu Ga Gotoku Studio, following the launch of his last game, Lost Judgment, a standalone title from the Yakuza universe. Shortly thereafter, he established Nagoshi Studio, which aims to develop a large-scale game. However, emerging reports reveal that this ambitious project may need to be significantly downsized to adhere to stringent timelines and financial restrictions.

Time Constraints and Budget Challenges for Nagoshi Studio

Yagami in Motorcycle Race - Lost Judgment

A recent Bloomberg report suggests that NetEase’s founder, William Ding, is instituting broad budget cuts across its development teams. These cuts have led to significant layoffs, including a complete workforce reduction in the Marvel Rivals team based in Seattle. Although Nagoshi’s team has been given some leeway to finalize their game, there are no plans for additional financial or promotional support, which could severely limit the game’s reach and effectiveness in the market.

As NetEase adjusts its focus towards more profitable ventures, gaming titles such as Eggy Party—a casual game released in February 2024—demonstrate a shift towards securing steady revenue streams. This transition implies that projects lacking immediate commercial viability, such as Nagoshi’s planned title, may be deprioritized.

Conversely, the Yakuza franchise continues to thrive in Nagoshi’s absence. Notably, four new titles have launched since he left, including Like a Dragon: Pirate Yakuza in Hawaii, which debuted on February 21 to considerable acclaim and a commendable 84% recommendation rate from critics on OpenCritic. Positive feedback has also emerged from early players on Steam, suggesting that the legacy of Nagoshi’s creative vision remains robust even as he embarks on new projects.

Source & Images