Nagoshi Studio, the Japanese game developer founded by Yakuza creator Toshihiro Nagoshi, has officially been dissolved following the withdrawal of financial support from NetEase Games. A notice published in Japan’s government gazette, Kanpo, on November 2, 2026, confirms that the company was dissolved through a shareholders’ resolution dated October 31.
The legal dissolution confirms the studio’s closure after months of uncertainty surrounding its operations. Earlier reports had indicated that Nagoshi Studio was effectively shut down, but the government notice provides formal confirmation of the company’s status.
Nagoshi Studio was established in November 2021 after Toshihiro Nagoshi departed Sega and Ryu Ga Gotoku Studio, where he had played a central role in creating the Yakuza franchise. NetEase Games formally announced the Tokyo-based developer in January 2022, with Nagoshi serving as its representative director and CEO.
The studio’s first project was GANG OF DRAGON, a crime action-adventure game unveiled at The Game Awards in December 2025. Set in Tokyo’s Kabukicho entertainment district, the game starred South Korean actor Ma Dong-seok, also known as Don Lee, and featured a crime-focused setting reminiscent of Nagoshi’s previous work.
However, the project’s financial future became uncertain in March 2026, when Bloomberg reported that NetEase planned to discontinue funding for Nagoshi Studio in May as part of a wider reduction in its game development investments. A NetEase spokesperson confirmed the funding decision.
Bloomberg’s reporting indicated that GANG OF DRAGON required at least another 7 billion yen, approximately $44.4 million at the time, to complete development. Nagoshi was reportedly seeking alternative financial backing, but no successful funding agreement had been disclosed.
NetEase was reportedly willing to allow the developer to become independent, although retaining the game’s existing assets and intellectual property would require the studio to cover the associated costs. This complicated the possibility of continuing GANG OF DRAGON outside NetEase’s financial support.
The situation reflects the financial difficulties facing developers that lose publisher backing during production. Other projects, including Chronicles: Medieval, have also faced uncertainty after losing development funding.
By October, industry reports suggested that Nagoshi Studio had effectively ceased operations. The November 2 government notice now establishes that the company was formally dissolved following the October 31 shareholders’ resolution, resolving the uncertainty surrounding its legal existence.
The future of GANG OF DRAGON remains unclear. Although Nagoshi Studio has been dissolved, neither NetEase nor Nagoshi has publicly confirmed a formal cancellation of the game or announced whether its development assets could be transferred to another team.
No revised release plans or arrangements for continuing development have been announced. The studio’s dissolution therefore confirms the end of Nagoshi Studio as a company, but does not establish a definitive outcome for its unreleased debut project.
