Nagoshi Studio, founded by Yakuza creator Toshihiro Nagoshi, has officially been dissolved following NetEase’s decision to withdraw funding from the Japanese developer.
The closure comes less than a year after the studio unveiled its debut project, GANG OF DRAGON, during The Game Awards 2025.
Nagoshi Studio Closes as GANG OF DRAGON Faces Uncertain Future
According to Japan’s Official Gazette, published on November 2, 2026, Nagoshi Studio has been formally dissolved.
The announcement follows reports from March that NetEase had stopped financing the developer, leaving its ambitious action game in an uncertain position.
Development of GANG OF DRAGON reportedly required tens of millions of additional dollars, an investment NetEase was unwilling to provide.
Founded in 2021, Nagoshi Studio was established by Toshihiro Nagoshi following his departure from Sega, where he spent approximately three decades and helped create the Yakuza franchise.
Its debut game generated considerable attention following its reveal at The Game Awards 2025.
However, despite the promising announcement, the studio has now closed before releasing its first title.
The future of GANG OF DRAGON remains unclear, with no official confirmation regarding whether development could continue under another studio or publisher.
