Yakuza creator's studio, and the game it was working on, are now officially gone

Nagoshi Studio, the creator of the Yakuza-inspired game Gang of Dragon, has officially ceased operations following the withdrawal of funding by their primary backer, NetEase. The studio's dissolution was officially announced in Japan's official gazette, Kanpo, on October 31. The news emerged back in March when Bloomberg reported that NetEase had decided to discontinue their support for the project after estimating the completion cost at an additional 7 billion yen, or approximately 44 million US dollars.

Despite revealing the ambitious game at the 2025 Game Awards with high expectations, Nagoshi Studio was unable to secure a new financial partner for the completion. Following the reveal, NetEase has been actively reducing its gaming portfolio and divesting overseas investments since 2024, resulting in the closure of several studios, including a newly established MMO studio led by former World of Warcraft designer Greg Street.

Nagoshi Studio was established in 2022 by its founder, Yakuza creator Toshihiro Nagoshi, and key personnel from Ryu Ga Gotoku Studio, the Sega development team renowned for the Yakuza/Like a Dragon series. Nagoshi's illustrious career at Sega spanned over three decades, during which he contributed to groundbreaking titles such as Daytona USA, Shenmue, and Super Monkey Ball, before launching the Yakuza series.