Nagoshi Studio Officially Closes After Funding Freeze by NetEase Games

After its December 2025 announcement, the fate of the studio's first title, Gang of Dragon, remains unknown as it ceases operation.

Posted By | On 02nd, Nov. 2026

We reported on rumors about Nagoshi Studios facing closure earlier this month with a heavy heart. We hoped against hope that Gang of Dragon was still on the cards, even as whispers of publisher NetEase Games being unwilling to foot the bill for additional development costs began to surface. Well, it seems the rumors were true, as the studio announced its closure via a notice in the Japanese government’s gazette, Kanpo.

The decision came about from a shareholders’ resolution on October 31st. It’s a real shame given the studio’s proud heritage with the creator of the Yakuza franchise, Toshihiro Nagoshi, at the helm. Gang of Dragon certainly looked quite intriguing, bringing a new setting and protagonist (played by Ma Dong-seok) to a new criminal underworld.

There wasn’t much beyond that, but we were confident it could recreate the magic that Yakuza’s many titles brought to our screens. Whether that can still happen depends on NetEase, but we wouldn’t advise holding your breath until there’s an official announcement. For now, it’s time to bid adieu to the studio, and hope its displaced talent can land on their feet sooner rather than later in an industry that’s still too turbulent for comfort.


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