Founded by Toshihiro Nagoshi, creator of the Yakuza franchise, known in the West as Like a Dragon, Nagoshi Studio officially shut down its operations on October 31, 2026. The dissolution was registered in the Japanese government's official gazette, the Kanpo, and reported by specialized media outlets. The studio closed its doors without releasing its first game, Gang of Dragon, an action title introduced to the public during The Game Awards 2025.
The project featured South Korean actor Ma Dong-seok, known for his roles in Train to Busan and Marvel's Eternals. The suspension of activities comes after the Chinese giant NetEase, which funded the studio, decided to cut investments in the game. In March 2026, information released by Bloomberg indicated that NetEase found that over ¥7 billion, approximately $44.4 million or more than R$ 230 million, was needed to complete development.
Following the budget cut, Nagoshi attempted to find new financial partners without success. Although NetEase allowed the team to continue the project independently provided they covered the maintenance costs for assets and the brand, the lack of new resources prevented continuation. To date, Toshihiro Nagoshi has not announced his next professional steps following the company's closure.