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Yakuza creator Toshihiro Nagoshi's studio has shut down before shipping Gang of Dragon
A notice in Japan's government gazette confirms Nagoshi Studio was dissolved on October 31, months after NetEase reportedly pulled its funding.
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The short version
- Nagoshi Studio was dissolved by shareholder resolution on October 31.
- Bloomberg reported the game needed at least another ¥7 billion to finish.
- Gang of Dragon, revealed at The Game Awards 2025, looks unlikely to ever come out.
Nagoshi Studio, the Tokyo-based developer founded by Yakuza creator Toshihiro Nagoshi, has officially shut down without releasing a game.
Gematsu reported that the studio was closed through a shareholders' resolution on October 31, with the notice published in Japan's government gazette Kanpo.
That leaves Gang of Dragon, the studio's Yakuza-like debut, with no developer behind it. The game got a big reveal at The Game Awards in 2025, with a trailer starring Train to Busan actor Ma Dong-seok.
Nagoshi left Sega after a career there of more than 30 years, and set up the studio with backing from NetEase alongside Yakuza series director Daisuke Sato.
Trouble started in March, when reports said NetEase was pulling its funding. According to Bloomberg, NetEase made that call after learning Gang of Dragon needed at least another ¥7 billion (approx. $44.4 million) to be completed. Nagoshi was reportedly looking for new investors to buy the studio out, without success.
The warning signs kept piling up after that. The game's official YouTube channel went down briefly in April, its website was taken down in May, and Sato changed his Twitter bio to say ex-Nagoshi Studio.
It's a rough end for a team that never got to ship anything. NetEase has been pulling back on international investments, and other studios it backed, including Mac Walters' Worlds Untold and Jerry Hooks' Jar of Sparks, have also lost funding.
Gang of Dragon's Steam page was still live at the time of the reports. The exact reasons for the closure haven't been officially detailed.
What we don’t know yet
- No official statement has explained the exact reasons for the closure.
- It's unclear what happens to the Gang of Dragon project or its rights.
- There's no word on what Nagoshi or the studio's staff will do next.
Sources & updates
- Nagoshi Studio shuts down — Gematsu
- Yakuza Series Creator Toshiro Nagoshi's Studio Has Officially Shut Down Before Releasing a Game — Steam News
- Yakuza Creator's Gang of Dragon PS5 Game and New Studio Officially Dead — Push Square
- Yakuza creator's Nagoshi Studio shuts down less than a year after the reveal of Gang of Dragon — Steam News
- Nagoshi Studio shuts down, officially dissolved as of October 31 — Steam News
- Gang Of Dragon Won’t Be The First Game From Nagoshi Studio. It Won’t Be Any Game At All — GameSpot
- Published Nov 3, 2026
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