Nagoshi Studio, the developer founded by Yakuza creator Toshihiro Nagoshi, has officially closed after backer NetEase stopped funding the studio. Japan's official gazette Kanpo confirmed the company dissolved on Oct. 31.
The studio was developing Gang of Dragon, a crime drama starring Ma Dong-seok that aimed for a more realistic and violent take on gangster life in Tokyo's Kabukicho district than the Yakuza games. NetEase cut funding in March after learning Gang of Dragon would cost another 7 billion yen ($44 million) to complete. Nagoshi Studio failed to find another backer.
Gang of Dragon was revealed at the 2025 Game Awards with a cinematic trailer. NetEase has been divesting overseas gaming investments since 2024, closing multiple studios including a new MMO studio founded by World of Warcraft designer Greg Street.
Nagoshi Studio was founded in 2022 by Nagoshi and key members of Ryu Ga Gotoku Studio, the Sega team behind the Yakuza/Like a Dragon series. Nagoshi spent over 30 years at Sega working on Daytona USA, Shenmue, and Super Monkey Ball before creating the Yakuza series.