Nagoshi Studio has officially dissolved following an October 31, 2026 shareholders’ resolution published in Japan’s Official Gazette. Founded by Toshihiro Nagoshi in November 2021 with backing from NetEase Games, the Tokyo developer closed its doors without ever releasing a single game.
The corporate liquidation was confirmed through a notice published in Extra Edition No. 240 of Kanpō, the official government gazette, naming Minoru Morinaga as the representative liquidator. Creditors have two months from the publication date to submit claims, while former executives, including Toshihiro Nagoshi, had already been removed from the corporate registry’s board of directors by early October.
The ¥7 Billion Funding Gap and NetEase Retreat
The studio’s collapse followed a major financial fracture earlier in the year. Bloomberg reported in March 2026 that NetEase Games planned to cut funding after learning that the studio’s debut project would require at least another ¥7 billion, roughly US$44.4 million at the time, to reach completion.
NetEase was reportedly willing to let Nagoshi Studio become independent if it could cover the necessary costs. However, discussions hit an impasse over the ownership of development assets and intellectual property created under NetEase’s investment. Unable to secure external investors to bridge the multimillion-dollar gap or reach a buyout agreement, the studio faced mounting operational distress. Its official website became inaccessible in May, and its official YouTube channel was taken offline alongside the removal of debut trailers.
The Fate of Gang of Dragon and Ma Dong-seok Starrer
The dissolution places the future of the studio’s ambitious action-adventure game, Gang of Dragon, in severe limbo. Unveiled globally during The Game Awards in December 2025, the gritty crime drama generated intense buzz by casting international action star Ma Dong-seok—also known as Don Lee—as its central protagonist.
Shin Ji-seong — portrayed by renowned Asian actor Ma Dong-seok — is a high-ranking member of a Korean crime syndicate based in Kabukicho. As he explores the streets of Shinjuku, Shin becomes entangled in underworld conflicts and forges intense, human connections that push him to confront his own sense of purpose.
Set against the neon-lit nightlife district of Shinjuku and Kabukicho, the game promised brutal hand-to-hand combat, blade attacks, gunplay, and high-impact vehicle action. Despite the corporate closure, the title has not been formally canceled. Its Steam store page remains live and lists the project as coming soon, though no development team remains employed to finish it.
Industry Fallout and Closing Independent Chapter
The closure brings an abrupt end to Toshihiro Nagoshi’s independent venture after more than 30 years at SEGA, where he worked on titles including Daytona USA, Shenmue, Super Monkey Ball, and the Yakuza series. He established Nagoshi Studio in November 2021 alongside key personnel who departed Ryu Ga Gotoku Studio.
NetEase’s withdrawal from Nagoshi Studio aligns with a broader corporate retreat from overseas video game investments that began around 2024, which also affected other high-profile developer projects. While corporate dissolution initiates the formal winding-up process rather than a Chapter 7-style bankruptcy, bringing Shin Ji-seong’s underworld story back to life would require a rescue deal for the stranded intellectual property.
Background on Star-Led Studios and Development Realities
Industry veterans leaving major corporations to establish new development houses happens frequently, usually relying on an outside publisher or financial backer to cover the initial operational years. However, when development costs escalate far beyond initial forecasts, publisher-backed independent studios frequently encounter severe hurdles, particularly during complex negotiations surrounding the buyout of underlying intellectual property rights.
In the case of Nagoshi Studio, the corporate entity itself ended while the status of its lone announced game remained officially open. Observers noted that while dissolved corporate entities can legally execute asset sales, any potential rescue deal would require a formal announcement from either a buying party or the assigned liquidator. No such acquisition has been reported or confirmed by any outlet.