Nagoshi Studio, the all-new venture established by Toshihiro Nagoshi, a former 30-year veteran of Sega, has officially been dissolved by NetEase, Japanese media has revealed. In March, it was revealed that NetEase had halted funding for the studio, directly impacting the ongoing development of GANG OF DRAGON, the team’s debut title.
The game had been given a grand reveal during 2025’s The Game Awards showcase, and it was met with a positive reception. Unfortunately, barely one year later, it has been reported that Nagoshi Studio is officially closed.
Yakuza Creator Has Studio Shut Down
It was revealed earlier this year that GANG OF DRAGON would require tens of millions of dollars to be finished. That was a request that NetEase was unwilling to satisfy, and per the report, they pulled the plug on funding.
The Japanese government’s Official Gazette, published on November 2nd, has confirmed that Nagoshi Studio has been officially dissolved, barely five years after it was founded by Toshihiro Nagoshi, former chief creative officer at Sega and creator of the Yakuza series.
It was stated that the decision to shut down Nagoshi Studio was made on October 31st, and now, a liquidation process has started that will see the company’s assets and liabilities settled. The future of GANG OF DRAGON is now entirely unclear but likely unrecoverable.
At the time of writing, GANG OF DRAGON’s Steam page was still accessible, listing the game as ‘coming soon’. It was set to be an action-adventure title set to rival everything Yakuza had come to be, set in the heart of modern-day Tokyo and featuring a stellar cast.
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Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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