Yakuza creator’s new studio and its debut game Gang of Dragon are no more after losing funding from NetEase

Nagoshi Studio, founded by Yakuza series creator Toshihiro Nagoshi, has officially closed after publisher NetEase withdrew financial support. The studio was dissolved by shareholders’ resolution on October 31, 2026, as confirmed in Japan’s official government gazette Kanpo.

Nagoshi established the studio in 2021 after departing Sega, where he had spent over 30 years as chief creative officer and head of the Ryu Ga Gotoku Studio. Working under NetEase Games, Nagoshi Studio announced its debut title, Gang of Dragon—a crime drama game designed as a spiritual successor to the Yakuza/Like a Dragon franchise—at The Game Awards in December 2025, featuring actor Ma Dong-Seok.

Just three months later, NetEase halted funding after determining the project would require an additional 7 billion yen (approximately $44.5 million) to complete. The studio failed to secure alternative backing and subsequently closed. Gang of Dragon will never be released.

The studio’s website disappeared earlier this year, with the official Gang of Dragon YouTube channel going temporarily offline in April. This closure marks a notable setback for fans of Nagoshi’s work and underscores the precarious nature of game development dependent on publisher funding, even with established creative leadership.

Yakuza creator’s new studio and its debut game Gang of Dragon are no more after losing funding from NetEase

Sources