Gang of Dragon developer Nagoshi Studio shutters months after NetEase cut funding

Nagoshi Studio, the developer behind the Gang of Dragon game, has been shut down following NetEase's decision to cut funding earlier this year. The studio's closure was officially announced on October 31 in the Japanese government gazette Kanpo, after a shareholders' resolution dissolved the company. Nagoshi Studio was founded by Yakuza series creator Toshihiro Nagoshi under NetEase Games in 2022, following his departure from Sega.

The studio made a teaser trailer for Gang of Dragon at The Game Awards in December 2025. Despite this, NetEase terminated its funding for the studio in March 2026, citing an estimated need of ¥7 billion ($44.4 million) more to complete the project. Despite efforts to secure new sponsors, Nagoshi Studio was unable to find support and was required to bear the costs of its assets and brand if it wished to continue operating independently.

Toshihiro Nagoshi, who joined Sega in 1989 and served in various capacities at the company, including as the chief creative officer at Sega until 2021, has also taken on the role of creative director and general director of Like a Dragon developer Ryu Ga Gotoku Studio. The closure of Nagoshi Studio is not an isolated incident, as another Japanese developer, Romeo is a Dead Man, recently left NetEase Games to become independent, citing a desire for wider creative freedom.