Nagoshi Studio closes following NetEase funding cuts

Tokyo-based developer Nagoshi Studio has officially closed following funding cuts by parent publisher NetEase. Game Developer, VGC and Gematsu all reported that Japan's official government gazette, Kanpo, published a notice confirming the studio was dissolved by a shareholders' resolution on October 31, 2026. [1][2][3][4]

The developer was working on its debut title, Gang of Dragon, an action adventure game set in Kabukicho, Tokyo. Gematsu and VGC reported that the game starred South Korean-American actor Ma Dong-seok. GamesIndustry.biz and Gematsu noted that the title was announced in December 2025 at The Game Awards, but NetEase withdrew development funding earlier in 2026. RPG Site reported that the game's Steam store page remains online, though Engadget reported that the status of the project is now unclear. [1][2][3][4][5][6]

Toshihiro Nagoshi joined Sega in 1989 and previously served as its chief creative officer and head of Ryu Ga Gotoku Studio, where he created the Like a Dragon and Yakuza franchise. Game Developer and Gematsu reported that Nagoshi founded Nagoshi Studio under NetEase Games in late 2021, while GamesIndustry.biz stated the studio was formed in 2022. [1][3][4][11]