Nagoshi Studio has officially closed, bringing an end to the Japanese developer founded in 2021 by Toshihiro Nagoshi following his departure from Sega. The studio’s announced action game, Gang of Dragon, has been cancelled as a result.
The project’s future had already become uncertain earlier this year, when NetEase Games withdrew its financial support after learning that more than 40 million would be needed to complete the game. Nagoshi Studio was expected to find another investor, but no replacement funding was secured.
Signs of trouble had appeared in the months before the closure. Several employees were reportedly laid off, the studio’s social media accounts were shut down and Nagoshi avoided discussing the game during the summer. The company’s dissolution was confirmed on October 31.
Gang of Dragon was unveiled in December 2025 as a spiritual successor to Yakuza. Set in Kabukicho, Tokyo, the game was planned as a third-person action experience starring Shin Ji-seong, a senior member of a Korean criminal syndicate portrayed by actor Ma Dong-seok. The character was to become involved in conflicts within the criminal underworld and intense personal relationships.
Its setting and focus on crime and human drama recalled the series Nagoshi helped create, although the game will now not be released. Nagoshi’s plans following the studio’s closure have not been confirmed.
RGG Studio continues to work on the Yakuza/Like a Dragon franchise, including new games and remakes, while also developing projects connected to Virtua Fighter and the original title Stranger Than Heaven.
Sources: Vandal.