Nagoshi Studio, the independent development house founded by legendary Yakuza series creator Toshihiro Nagoshi, has officially closed its doors. The dissolution, confirmed in Japan’s official gazette, follows a major withdrawal of financial support from the Chinese gaming giant NetEase. This shutdown effectively halts the development of Gang of Dragon, a crime drama featuring actor Ma Dong-seok that was intended to provide a more realistic and violent exploration of Tokyo’s Kabukicho district than the series Nagoshi previously pioneered at Sega.
The studio’s closure was primarily driven by a funding crisis. Reports indicate that NetEase decided to cut off its investment after learning that Gang of Dragon would require an additional 7 billion yen (approximately $44 million) to complete. Despite the game’s cinematic debut at the 2025 Game Awards, Nagoshi Studio was unable to secure a new backer to cover the remaining development costs, leading to the studio’s formal dissolution on October 31.
Nagoshi Studio was established in 2022 by Nagoshi and key members of Ryu Ga Gotoku Studio, the team behind the Yakuza/Like a Dragon franchise. Nagoshi is a veteran of the industry with over 30 years at Sega, where he worked on titles such as Daytona USA, Shenmue, and Super Monkey Ball. The closure of his studio reflects a broader trend of NetEase slimming down its gaming portfolio and divesting from overseas investments, a move that has seen several other studios shuttered recently.
Source: Polygon · summary generated by AI
