Featured image: official Gang of Dragon screenshot by Nagoshi Studio via the Steam store page
Nagoshi Studio, the developer founded by Yakuza creator Toshihiro Nagoshi, no longer exists. A notice in Japan’s government gazette, the Kanpo, confirms the company was dissolved on October 31. That puts a formal end to a story that had been unravelling in public since March, and it leaves its only announced game, Gang of Dragon, with no studio, no funding and no release date.
The news was first picked up by Gematsu and then relayed by GamesRadar. Below is what is confirmed, how we got here, and what it says about the state of the industry.
The short version
- What happened: Nagoshi Studio was dissolved on October 31, per a Kanpo notice
- Who owned it: NetEase, which reportedly pulled funding earlier this year
- The game: Gang of Dragon, starring Ma Dong-seok, was revealed at The Game Awards 2025 and has no release date
- Official word: None. Neither Nagoshi nor the studio has posted on social media since the start of the year
Who is Toshihiro Nagoshi?
Nagoshi spent more than 30 years at Sega, where he created the Yakuza series and Super Monkey Ball. After the release of the series semi-reboot Yakuza: Like a Dragon and Lost Judgment, he left the company and founded Nagoshi Studio with Yakuza series director Daisuke Sato. The studio was backed by Chinese publisher NetEase, which gave it a lot of freedom and, as it turned out, a lot of dependence on one funder.
For years the studio stayed quiet. Then at The Game Awards in 2025 it revealed Gang of Dragon, an action-adventure set in the streets of Shinjuku, Tokyo, including the Kabukicho entertainment district. According to its Steam page, the story follows Shin Ji-seong, played by Train to Busan actor Ma Dong-seok. On paper it looked like a spiritual successor to the games that made Nagoshi famous.
A timeline of the collapse
From reveal to dissolution
Less than a year passed between the announcement and the end. Sources: GamesRadar, Bloomberg via press reports, Segabits.
What stands out is the silence. The studio never publicly explained any of this. Fans pieced it together from a dead website, deleted trailers and a changed bio, which is a grim way to learn that a game you were excited about is gone.
What happens to Gang of Dragon?
Officially, nothing has been said. The game still has a Steam store page that lists it as “Coming soon,” but with the developer dissolved, there is nobody left to ship it. Earlier reports suggested the team was looking for alternative funding, including a possible full buyout, but no buyer has been announced. Unless NetEase or another party acquires the project and its assets, the most realistic outcome is that the game is quietly shelved.
NetEase is pulling back everywhere
Nagoshi Studio is not an isolated case. NetEase has been trimming its overseas and Japanese investments for the past year or two. Here are the examples GamesRadar lists.
| Studio | Led by | What happened |
|---|---|---|
| Nagoshi Studio | Toshihiro Nagoshi (Yakuza) | Funding reportedly pulled, studio dissolved Oct 31 |
| Worlds Untold | Mac Walters (Mass Effect writer) | Funding pulled |
| Jar of Sparks | Jerry Hooks (former Halo lead) | Funding pulled |
| Grasshopper Manufacture | Suda51 | Self-published Romeo Is a Dead Man, then split from NetEase to go independent about a month ago |
The pattern is clear. Star-led studios backed by one big publisher were a fashionable bet a few years ago. Now that the money is tighter, they are among the first things cut.
A rough year for veteran creators
It is also worth seeing this alongside the rest of the news cycle. Only a few days ago we wrote about EA closing BioWare after 30 years, and before that about Funcom’s new layoffs and CEO departure and the deadline hanging over Arkane Lyon. Each case has its own details, but the common thread is that name recognition no longer protects a studio when a parent company decides to cut costs.
What to watch next
- A rescue deal: Any announcement from NetEase, Sega or another publisher about acquiring the Gang of Dragon assets.
- Nagoshi’s next move: He has not spoken publicly this year. A statement or a new project would be the first sign of what comes next.
- The Steam page: If it disappears, that is as close to a cancellation notice as we are likely to get.
- Other NetEase studios: More partnerships could end the same way.
My take
It is sad to see Nagoshi’s second act end like this, mostly because it ended without a word. A reveal at The Game Awards, a famous lead actor and a Yakuza pedigree should have been enough to guarantee at least a proper farewell. Instead, fans got a government gazette entry. If there is a lesson here, it is that a flashy trailer and a famous name are not the same thing as a funded game.
Sources: GamesRadar, VGC, The Star, Segabits, Steam.
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