Nagoshi Studio, the Tokyo-based company founded by Yakuza creator Toshiro Nagoshi, has officially shut down before releasing its first game. The closure was approved through a shareholders’ resolution on October 31, according to an announcement published in Japan’s government gazette, Kanpo.
The studio was established in 2022 after Nagoshi left Ryu Ga Gotoku the previous year. It was backed by Chinese technology company NetEase, and its planned debut was Gang of Dragon, a game described as being similar to the Yakuza series.
The project’s future became uncertain in March, when NetEase indicated that it intended to end its funding as part of a broader reduction in international video game investment. Bloomberg reported that the company made the decision after learning Gang of Dragon required at least another ¥7 billion, approximately $44.4 million, to reach completion.
Nagoshi reportedly sought new investors to help buy the studio out, but those efforts did not succeed. Gang of Dragon had received a major public reveal at The Game Awards in December, roughly a year before the studio’s closure, but the game now appears unlikely to be released.
Sources: IGN.