Nagoshi Studio dissolved on October 31, 2026, following a shareholders’ resolution published in Japan’s Official Gazette. The Tokyo developer, founded in November 2021 by Yakuza creator Toshihiro Nagoshi, shut down after a funding pullback left its unreleased debut action game, Gang of Dragon, without financial backing.
The formal end of the studio arrived quietly through a legal filing. According to a notice published in Japan’s government gazette Kanpo, the company officially dissolved by a shareholders’ resolution
dated October 31, 2026. Minoru Morinaga is managing the liquidation process.
After leaving SEGA and Ryu Ga Gotoku Studio—where he was instrumental in developing the Yakuza series—Toshihiro Nagoshi founded the company in November 2021. In January 2022, NetEase Games officially introduced the Tokyo developer to the public, appointing Nagoshi as its CEO and representative director.
Gang of Dragon Reveal and the Unraveling Financial Gap
Excitement peaked in December 2025 when the studio debuted Gang of Dragon during The Game Awards. Centered in Tokyo’s Kabukicho area, the crime action-adventure title featured South Korean performer Ma Dong-seok (also recognized as Don Lee), whose previous credits include Marvel’s Eternals and Death Stranding 2.
As of October 31st, Nagoshi Studio was officially shut down by NetEase.Toshiro Nagoshi left Sega in 2021 to start his own studio.https://t.co/zxwWhjMNgS pic.twitter.com/l857IFEbBK
That momentum vanished early in 2026. Video Games Chronicle noted that employees were informed in March that NetEase intended to cut off funding. Bloomberg reported that the publisher decided to pull its backing after discovering that finishing the game required at least ¥7 billion ($44.4 million) more.
Independent Search Failures and Corporate Realities
The legal dissolution confirms the studio’s closure after months of uncertainty surrounding its operations. Although the government notice provides formal confirmation of the company’s status, it documents a dissolution by shareholders’ resolution without specifying who held which shares or which holder pushed for the vote. A reasonable reader can infer that the backer’s pullback drove events, even though the documented act was a shareholder vote rather than an initial NetEase announcement.
Independent Search Fails After NetEase Withdraws Support
Following the funding cut, Nagoshi Studio attempted to stay afloat. NetEase was reportedly willing to let the developer operate independently, but retaining the game’s existing assets and intellectual property required the studio to cover those costs itself. The developer tried to find new sponsors without success
and was told by its parent company that while it is free to continue on its own, it must bear the corresponding costs if it wants to keep the assets or brand.
As months passed without a rescue deal, outward signs of trouble multiplied. The studio’s YouTube channel and the game’s reveal trailer went offline, and reports indicated that operations had effectively ceased ahead of the formal late-October dissolution.
Broader Industry Backlash and NetEase Restructuring
Nagoshi Studio’s closure fits into a wider pattern of NetEase significantly scaling back its international game development operations after years of aggressive global expansion.
Other Japanese developers have navigated similar exits differently. Grasshopper Manufacture split from NetEase in September to regain independence for its upcoming project. CEO Goichi Suda explained that his studio found a strong desire to deliver titles in an even wider variety of styles to video game lovers everywhere,
noting that This decision was reached after thorough discussions with NetEase Games and with their generous cooperation.
Unresolved Questions Surrounding Gang of Dragon
While the corporate entity no longer exists, official word on the game’s permanent fate remains absent. Neither NetEase nor Nagoshi has issued a formal cancellation statement, leaving the status of Gang of Dragon and its development assets entirely unconfirmed.