Nagoshi Studio, the Tokyo-based developer behind the Yakuza-inspired action-adventure game Gang of Dragon, has officially shut down one year after announcing the project. The closure was confirmed by Japan’s Kanpo, a government platform, which stated the studio was liquidated on October 31 following a decision by its shareholders. The studio, founded by Toshihiro Nagoshi—a former Creative Officer at Sega and creator of the Yakuza series—had struggled to secure sufficient funding for Gang of Dragon, which required approximately 7 billion yen (about 44 million dollars) to complete. NetEase, the studio’s parent company, halted financial support in March 2025, citing the project’s high costs and its status as Nagoshi’s first venture under their umbrella.
The shutdown followed months of declining visibility, including the removal of the studio’s YouTube channel in April 2025 and the temporary unavailability of the Gang of Dragon website. Despite these signs, the game remained accessible on Steam as of the latest reports. The Japanese government’s confirmation of the closure marks the end of Nagoshi Studio, which had operated for less than five years. No details were provided about Nagoshi’s future plans or the potential fate of Gang of Dragon, though the game is now considered likely canceled.
Funding Challenges and Closure Decision
NetEase’s decision to cease funding for Gang of Dragon came after the studio disclosed the project’s financial needs, which exceeded available resources. The 7 billion yen requirement, equivalent to 44 million dollars, proved insurmountable for Nagoshi Studio. Kanpo’s announcement of the closure on October 31 underscored the finality of the situation, with liquidation processes now underway to settle the studio’s assets and liabilities.
Status of Gang of Dragon
Gang of Dragon
was unveiled at The Game Awards 2025 and featured actor Ma Dong-seok in a leading role. While the Steam page for the title remains active, no further updates or releases have been announced. Nagoshi Studio’s closure also marks the end of an era for a developer tied to the Yakuza franchise.
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