Nagoshi Studio, founded by Yakuza creator Toshihiro Nagoshi under NetEase, has been shut down before releasing its first game. According to Gematsu, shareholders approved the developer’s dissolution on October 31, with the resolution later published in Japan’s official government gazette, Kanpo.
The studio had been developing Gang of Dragon, a project that appeared to share similarities with Nagoshi’s work on Sega’s Yakuza and Like a Dragon series at Ryu Ga Gotoku Studio. Development continued for several years, and a trailer was presented at The Game Awards last year.
However, reports in March indicated that NetEase had withdrawn funding for the project. The game’s official YouTube channel briefly disappeared in April, while its website was taken down in May. The precise reason for Nagoshi Studio’s closure has not been disclosed.
Bloomberg reported in March that Nagoshi was seeking an additional $44 million to complete Gang of Dragon. NetEase may have decided not to provide further funding, although the company has not publicly detailed the circumstances behind the studio’s dissolution.
Since Nagoshi left Sega, his former studio, RGG Studio, has continued releasing games in the Yakuza and Like a Dragon franchises. Its subsequent titles include Like a Dragon: Ishin, Like a Dragon Gaiden: The Man Who Erased His Name, Like a Dragon: Infinite Wealth, Like a Dragon: Pirate Yakuza in Hawaii, and Yakuza Kiwami 3 & Dark Ties.
Nagoshi’s final Sega credits included Lost Judgment, Super Monkey Ball Banana Mania, and Virtua Fighter 5: Ultimate Showdown. RGG Studio is also scheduled to release Stranger Than Heaven next year, a game described as a distant prequel to Like a Dragon spanning 50 years.
Sources: GameSpot.