The studio behind the famed Yakuza series has been wound up before its first new title could hit shelves.
Key points
- Nagoshi Studio was formally dissolved on 31 October 2026, as recorded in Japan’s Official Gazette.
- The studio lost NetEase’s financial backing, creating a shortfall of at least ¥7 billion needed to finish its debut title.
- The future of "Gang of Dragon" remains uncertain; while the Steam page still lists the game, no cancellation has been officially announced.
Nagoshi Studio, the game development house founded by Yakuza creator Toshihiro Nagoshi, has been officially dissolved, according to a notice published in Japan’s Official Gazette on 2 November 2026.
The Gazette entry, found on page 176, records that shareholders voted to dissolve the company on 31 October and invites creditors to submit claims as the firm winds up its affairs.
Official dissolution and creditor notice
The closure follows months of financial uncertainty. Bloomberg reported in March that NetEase would cease funding the studio in May, a claim later confirmed by a NetEase spokesperson, and Gematsu noted that completing the studio’s debut project would have required at least ¥7 billion in additional capital.
Nagoshi Studio was publicly unveiled by NetEase in January 2022 as a wholly‑owned subsidiary intended to give Nagoshi and his team creative freedom to develop console‑focused games for a global audience.
Funding shortfall after NetEase withdrawal
Its first project, the action‑adventure "Gang of Dragon," was showcased at The Game Awards in December 2025. The game features actor Ma Dong‑seok as Shin Ji‑seong, a senior member of a Korean crime syndicate operating in Tokyo’s Kabukicho district, and promises third‑person combat blending fists, swords, guns and vehicle sequences.
Despite the studio’s shutdown, the game’s Steam page remains live, still listing Nagoshi Studio as both developer and publisher and retaining a “Coming soon” release date, though no official confirmation of cancellation has been issued.
Uncertain future for Gang of Dragon
The dissolution underscores the volatility of high‑budget game development, especially when major funding partners withdraw support before a project reaches completion.
Reader questions
Has "Gang of Dragon" been officially cancelled?
No official cancellation has been announced; however, the studio’s dissolution leaves the game's future unclear.
Why did NetEase stop funding Nagoshi Studio?
Reports indicate NetEase decided to end its financial support in May 2026, which left the studio facing a funding gap of at least ¥7 billion.
What was the original purpose of Nagoshi Studio?
The studio was created as a wholly‑owned subsidiary of NetEase to give Toshihiro Nagoshi freedom to develop console‑focused games for a worldwide audience.
Source: powerupgaming.co.uk
