The Nagoshi Studio has officially ceased operations as of October 31, 2026, leading to the immediate cancellation of its upcoming project, Gang of Dragon. This development was confirmed through an official notice issued by the Japanese government. The studio was established by Toshihiro Nagoshi, the renowned creator behind the Yakuza series, with the specific goal of developing this new action title for the PlayStation 5.
The closure follows reports from March indicating that publisher NetEase had stopped financing the project. The company declined to invest an additional $44 million required to complete the game. This decision aligns with NetEase's revised corporate strategy, which prioritizes reducing investment in the international video game market.
Gang of Dragon was revealed just a few months prior at The Game Awards. The game was designed as an action title featuring street combat set in Tokyo. Actor Ma Dong-seok was cast to portray the main character, who was depicted as a high-ranking member of a criminal organization.
Sources: Eurogamer Portugal.