Nagoshi Studio Shuts Down as NetEase Pulls Funding from Yakuza Creator’s Gang of Dragon

Toshihiro Nagoshi’s independent venture Nagoshi Studio has officially closed, and its debut title Gang of Dragon is no longer in development after publisher NetEase withdrew financial backing. The studio, founded by the creator of Sega’s Yakuza series, was working on a crime-action game that drew comparisons to his previous work, but the project has now been cancelled. NetEase’s decision to cut funding follows broader cost-cutting measures in the games industry, leaving Nagoshi’s team without the resources to continue. The closure marks a significant setback for one of Japan’s most influential game designers, who left Sega in 2021 to pursue new creative directions. With the studio dissolved and the game shelved, Nagoshi’s future plans remain uncertain, but industry watchers will be keen to see where the veteran developer lands next.