Toshihiro Nagoshi, the former general director of Like a Dragon maker Ryu Ga Gotoku Studio, formed Nagoshi Studio with some colleagues from his time at Sega a few years ago, and the studio’s first big game was going to be Gang of Dragon, a Yakuza spiritual successor that was first revealed at the 2025 Game Awards. However, after months of speculation surrounding the studio’s fate, an announcement in an official Japanese government gazette has revealed that Nagoshi Studio is no more.
The November 2nd edition of the government gazette, which reports official business closures and openings among other things, reported the finalized closure of the studio and its operations as of October 31st. The studio had been supported by NetEase Games as part of the latter’s expansive investment into Japanese gaming. In recent months, however, the news surrounding NetEase’s various investments into Japanese studios has been defined by closures and cuts to funding. We now know this includes Nagoshi Studio.
Rumors surrounding the future of the company had been circulating heavily in recent months. Earlier this year, it was reported that the company was facing a shortfall in cash as NetEase pulled funding, with the studio needing roughly $44.4 million in order to finish development on its cinematic action title. Since then, there have been numerous signs that the company was being forced to wind down operations and cancel the project after being unable to acquire the needed funds elsewhere—the social media accounts for the studio have not been updated since February, with the YouTube channel deleted and website becoming inaccessible in May before being restored.
Numerous talents have left the studio and joined other companies in recent months, so the writing was on the wall before the news was confirmed. Listings on places such as Steam still show Gang of Dragon as coming soon, but it’s now very unlikely the title will see the light of day.