Nagoshi Studio, the Japanese developer founded by Yakuza creator Toshihiro Nagoshi, has closed after NetEase Games cut its funding for the company earlier this year.
Japan’s government gazette Kanpo published a notice on October 31 stating that the studio had been formally dissolved following a shareholders’ resolution, according to Gematsu.
Nagoshi established the studio under NetEase Games in 2022. In December 2025, the company revealed a teaser for its new intellectual property, Gang of Dragon, during The Game Awards.
NetEase confirmed in March 2026 that it had withdrawn funding from Nagoshi Studio, but did not explain the decision or disclose the terms of its exit. Reports said NetEase estimated that completing Gang of Dragon would require at least ¥7 billion, or $44.4 million.
The studio reportedly sought new financial partners but was unsuccessful. NetEase said Nagoshi Studio could continue independently, although it would have to cover the associated costs if it wanted to retain the project’s assets or brand.
Nagoshi joined Sega in 1989 and spent several years working in its AM2 arcade division. He later became Sega’s chief creative officer and served as creative director and general manager of Ryu Ga Gotoku Studio, the developer of the Like a Dragon series, before leaving the company in 2021.
Nagoshi Studio is not the only Japanese developer to have separated from NetEase recently. In September, Grasshopper Manufacture, the studio behind Romeo is a Dead Man, became independent again after ending its partnership with the Chinese publisher.
Grasshopper CEO Goichi “Suda51” Suda said the decision followed a desire to create a broader range of games, adding that it was reached after discussions with NetEase and with the publisher’s cooperation.
Sources: GamesIndustry.biz.