NetEase Cuts Funding to Nagoshi Studio Amid Rising Costs and Competition

NetEase, Inc. (NASDAQ:NTES) is cutting funding to Nagoshi Studio, led by Yakuza franchise creator Toshihiro Nagoshi, as part of the company's strategy to shrink game development activities amid rising costs for AAA game development. The move underscores the struggles faced by the studio amid competition from alternative outlets such as social media. NetEase is actively developing the metaverse by leveraging its gaming background to create immersive virtual environments.