Nagoshi Studio, the Tokyo-based developer founded by Yakuza and Like A Dragon creator Toshihiro Nagoshi, has officially closed. The shutdown was confirmed in Japan's government gazette, Kanpo.
The studio was established in 2021 and announced Gang of Dragon, its first game, roughly a year ago. The project appeared to draw on the violent crime and dramatic storytelling associated with Nagoshi's earlier work, although little information about the game had been revealed. Its debut trailer also featured actor Ma Dong-seok, known for films including Train to Busan and Marvel's Eternals.
The closure follows reports that the studio's future had become uncertain after publisher NetEase reduced its funding. Nagoshi Studio was reportedly seeking an additional £33.1 million, or approximately $44.4 million at the time, to complete Gang of Dragon. The project now appears to have been abandoned, although no further details about its status were provided.
NetEase, the China-based publisher behind Marvel Rivals and Where Winds Meet, has reportedly scaled back its international investments in recent years. Other affected studios have included Ouka Studios, developer of Visions of Mana, and Worlds Untold, a studio founded by former Mass Effect veteran Mac Walters that paused operations while seeking a new partner.
Not every developer in this situation has closed. Grasshopper Manufacture, the studio associated with Suda51, remained independent after a management buyout.
Sources: Eurogamer.