Nagoshi Studio, founded by Toshihiro Nagoshi after he left Ryu Ga Gotoku Studio, has closed its operations as of October 31st, according to a November 2nd announcement in an official Japanese government gazette. The studio was developing Gang of Dragon, a Yakuza spiritual successor first revealed at the 2025 Game Awards.
NetEase Games had funded Nagoshi Studio as part of its Japanese gaming investments, but the publisher pulled funding in recent months. Earlier this year, reports indicated the studio faced a cash shortfall and needed roughly $44.4 million to finish development on the cinematic action title. The studio was unable to secure the additional funding elsewhere.
Signs of the studio's collapse emerged over months. Its social media accounts went inactive after February. The YouTube channel was deleted and the website became inaccessible in May before being restored later. Multiple staff members departed the studio for other companies. Steam still lists Gang of Dragon as "coming soon," but the game is now unlikely to release.
The closure reflects broader reductions in NetEase's Japanese studio investments in recent months, with multiple closures and funding cuts reported across its portfolio.