Yakuza creator Toshihiro Nagoshi’s new studio is shutting down, just 11 months after unveiling its debut game, Gang of Dragon. The closure means the Sleeping Dogs and Yakuza-inspired action title has effectively been cancelled before it ever reached players.
Nagoshi Studio was founded in 2021 after Toshihiro Nagoshi’s departure from Sega, with financial backing from NetEase. The studio finally unveiled its first project, Gang of Dragon, during The Game Awards 2025, presenting it as a gritty action game starring actor Ma Dong-seok. At the time, the project appeared to be a major new venture from one of Japan’s most recognisable game creators.
However, the studio’s future reportedly came into question earlier this year when Bloomberg reported that NetEase planned to end funding for the project as part of broader cutbacks to its games business. According to the report, the publisher baulked after learning that Gang of Dragon would need an additional ¥7 billion (around $44M) to reach completion.
Now, Japanese publication 4Gamer reports that shareholders voted to dissolve Nagoshi Studio during a meeting held on the 31st of October. While no formal cancellation announcement for Gang of Dragon has been issued, the closure of the studio effectively brings development of the project to an end.
KitGuru Says: Were you interested in Gang of Dragon when it was revealed last year, or did the project fly under your radar?
