Nagoshi Studio has shut down after NetEase pulled funding from its debut game Gang of Dragon. The studio, founded in 2021 by Toshihiro Nagoshi (creator of the Yakuza and Like A Dragon series), closed its doors with confirmation in the Japanese government gazette Kanpo.
Gang of Dragon needed approximately £33.1 million (about $44.4 million) to reach completion, a sum NetEase declined to provide. The publisher informed employees months earlier that the studio's future depended on securing additional funding.
NetEase, the China-based publisher behind Marvel Rivals and Where Winds Meet, has scaled back international investments significantly. The company shut down Visions of Mana developer Ouka Studios shortly after launch. Mac Walters' Worlds Untold paused operations to find a new publishing partner, and Jerry Hook's studio encountered similar funding issues last year.
Gang of Dragon's trailer showed crime-focused action aligned with Nagoshi's previous work. The game featured Ma Dong-seok, known for Train to Busan and Marvel's Eternals.
Some developers have fared better. Grasshopper Manufacture, led by Suda51, completed a management buyout and now operates independently.