Nagoshi Studio, the developer founded by Like a Dragon creator Toshihiro Nagoshi, has officially shut down after NetEase ended its funding. The company had been developing Gang of Dragon, a crime drama starring actor Ma Dong-seok and inspired by the style of the Yakuza series.
Japan’s official gazette, Kanpo, confirmed that Nagoshi Studio was dissolved on October 31. Bloomberg reported in March that NetEase had decided to stop supporting the project after learning that completing Gang of Dragon would require an additional 7 billion yen, equivalent to approximately $44 million. The studio reportedly could not find another backer.
Gang of Dragon was announced during The Game Awards in 2025 through a cinematic trailer. The footage presented a notably realistic and violent portrayal of gangster life in Tokyo’s Kabukicho district.
Nagoshi Studio was established in 2022 by Nagoshi and several former members of Ryu Ga Gotoku Studio, Sega’s team behind the Yakuza and Like a Dragon franchises. Before founding the company, Nagoshi spent more than three decades at Sega, contributing to games including Daytona USA, Shenmue and Super Monkey Ball.
NetEase has been reducing its gaming portfolio and selling overseas investments since 2024, a process that has led to the closure of several studios, including a new MMO team founded by World of Warcraft designer Greg Street.
Sources: Polygon.