Studio founded by Yakuza creator shuts down without releasing a single game
Nagoshi Studio dissolved by shareholders. The future of its debut action game Gang of Dragon remains uncertain
Nagoshi Studio, founded by the creator of the Yakuza series Toshihiro Nagoshi, has officially been dissolved. The decision was made by shareholders on October 31, 2026. The notice of this appeared on November 2 in the Japanese government gazette Kanpo.
The studio did not manage to release its first game, Gang of Dragon. It was unveiled at The Game Awards in December 2025. The action-adventure game was set to take place in Tokyo's Kabukicho district, with South Korean actor Ma Dong-seok, also known as Don Lee, playing the central role.
Nagoshi established the new team with the support of Chinese company NetEase after leaving Sega and Ryu Ga Gotoku Studio in 2021. Nagoshi Studio was publicly introduced in 2022.
Financial issues surrounding the project became known in March 2026. According to Bloomberg, NetEase decided to cease funding after it was revealed that completing Gang of Dragon would require at least an additional 7 billion yen—approximately $44.4 million at the time of publication.
The publication also reported that Nagoshi was seeking new investors to maintain the team and continue development independently of NetEase.
The closure of the studio raises serious questions about the future of Gang of Dragon. However, as of the news release, there has been no separate official statement regarding the cancellation of the game or the transfer of the project to another team.
