Nagoshi Studio, founded by former Ryu Ga Gotoku Studio general director Toshihiro Nagoshi and several former Sega colleagues, has officially ceased operations. The closure appears to bring an end to Gang of Dragon, a Yakuza spiritual successor first revealed at The Game Awards in 2025.
The closure was reported in the November 2 edition of Japan’s official government gazette, which listed the completion of Nagoshi Studio’s operations as of October 31. The company had received backing from NetEase Games through the publisher’s investments in Japanese game studios.
Speculation about the studio’s future had intensified in recent months. Reports indicated that NetEase had withdrawn funding and that Nagoshi Studio needed approximately $44.4 million to complete its cinematic action game. The studio was reportedly unable to secure the required money elsewhere.
Several signs had already pointed to a shutdown. Nagoshi Studio’s social media accounts had not been updated since February, while its YouTube channel was deleted and its website became inaccessible in May before later returning. A number of employees also left the company for other studios.
Gang of Dragon remains listed as “coming soon” on platforms including Steam, but the closure of Nagoshi Studio makes the game’s release highly unlikely.
Sources: Kotaku.