Gang of Dragon developer Nagoshi Studio has been closed after NetEase withdrew funding earlier this year.
According to Gematsu, the Japanese government gazette Kanpo published a closure notice on October 31, stating the studio was “officially dissolved by a shareholders’ resolution.”
Yakuza series creator Toshihiro Nagoshi founded Nagoshi Studio under NetEase Games in 2022. In December 2025, the studio debuted a teaser trailer for its new IP, Gang of Dragon, at The Game Awards.
By March 2026, NetEase confirmed it had cut funding to the studio but did not disclose reasons or exit terms.
Reports indicated NetEase estimated “at least ¥7 billion ($44.4 million) more would be needed” for Nagoshi Studio to complete Gang of Dragon.
The developer reportedly “tried to find new sponsors without success” and NetEase told it that “while it is free to continue on its own, it must bear the corresponding costs if it wants to keep the assets or brand.”
Nagoshi joined Sega in 1989 and spent several years in the AM2 arcade division. He later served as chief creative officer at Sega until 2021, after stepping down from the board.
Nagoshi continued at Sega as creative director and was also general director of Like a Dragon developer Ryu Ga Gotoku Studio.
Nagoshi Studio is not the only Japanese developer to have ended its partnership with NetEase.
In September, Romeo is a Dead Man Grasshopper Manufacture split from the China-based publisher to become independent.
CEO Goichi ‘Suda51’ Suda said the studio “found a strong desire to deliver titles in an even wider variety of styles to video game lovers everywhere,” which led it to become independent again.
“This decision was reached after thorough discussions with NetEase Games and with their generous cooperation. We continue to cherish the amazing relationship our companies have built, and look forward to further collaboration when the opportunity arises.”