Nagoshi Studio Shut Down by NetEase Before Gang of Dragon Release, Yakuza Creator's New Venture Ends

Nagoshi Studio, the NetEase-backed developer founded by Yakuza creator Toshiro Nagoshi, has been officially dissolved before shipping its debut title, Gang of Dragon. Shareholders approved the closure on October 31, according to a resolution published in Japan's government gazette. The studio had been working on Gang of Dragon, an action game that echoed Nagoshi's earlier work on Sega's Yakuza and Like a Dragon series. A trailer debuted at The Game Awards last year, but signs of trouble emerged in March when reports indicated NetEase pulled funding. Bloomberg later reported that Nagoshi sought an additional $44 million to complete the project, which NetEase apparently deemed too risky. The game's YouTube channel and website went dark earlier this year, signaling the end. Meanwhile, Nagoshi's former team at Ryu Ga Gotoku Studio has thrived, releasing five titles in the Like a Dragon franchise since his departure, with another prequel, Stranger Than Heaven, slated for next year. The closure marks a major setback for one of gaming's most celebrated creators and raises questions about NetEase's appetite for high-budget, single-player console games.