Nagoshi Studio, the developer founded by Yakuza creator Toshihiro Nagoshi, has officially dissolved, bringing the studio’s short-lived run under NetEase to an end.

The closure was confirmed in Japan’s Official Gazette, Kanpo, with the company’s dissolution recorded following a shareholders’ resolution on 31 October 2026. The news marks a disappointing turn for a studio that was formed in 2021 with the ambition of building a new home for Nagoshi and his team.

Its debut project, Gang of Dragon, was revealed at The Game Awards in December 2025. Set in Tokyo’s Kabukicho district, the action-adventure was shown with South Korean actor Ma Dong-seok, also known as Don Lee, in the lead role. The reveal generated plenty of interest, particularly among fans of Nagoshi’s work on the Yakuza series.

However, the studio’s future became uncertain earlier this year after reports emerged that NetEase planned to withdraw its funding. Bloomberg previously reported that the project required a substantial additional investment to reach completion, with the studio reportedly exploring options to continue independently.

What happens to Gang of Dragon now?

That remains the big unanswered question. The studio’s dissolution does not, by itself, confirm that Gang of Dragon has been cancelled. The game’s future, including whether another publisher or development team could take it forward, has not been officially clarified.

For now, the closure is another reminder of how quickly ambitious projects can be put at risk when major publishers change direction. For fans who were looking forward to seeing what Nagoshi could create outside of Sega, this is a particularly unfortunate development.

Sources: Video Games Chronicle · Gematsu