Nagoshi Studio dissolved, Gang of Dragon in limbo

Nagoshi Studio has officially been dissolved. The NetEase-backed studio founded by Yakuza creator Toshihiro Nagoshi was wound up by a shareholders' resolution on October 31, leaving its debut game, Gang of Dragon starring Ma Dong-seok, in limbo.

The dissolution notice was published in Kanpo, the Japanese government's Official Gazette, on November 2. According to Inven Global, it appeared on page 176 of issue No. 240, with Minoru Morinaga named as representative liquidator.

What happened to Nagoshi Studio?

Inven Global points out that a dissolution is not the same as bankruptcy. The company is entering liquidation rather than collapsing under debt. The end result is the same, though: the studio no longer exists as a legal entity.

The warning signs have been there for months. In March 2026, Bloomberg reported that NetEase would stop funding Nagoshi Studio from May. According to that report, finishing Gang of Dragon would need at least 7 billion yen in extra funding, which AUTOMATON puts at roughly $44.4 million. Nagoshi began looking for new investors.

Ownership of the work was the sticking point. Inven Global says NetEase was open to the studio going independent, but wanted it to pay to keep its development assets and IP. Even with new investment, it was unclear whether development could continue smoothly.

Nagoshi Studio timeline

What happens to Gang of Dragon?

For now, nobody knows. The Steam page is still active and lists the release date as "coming soon." However, there has been no official word on development resuming, a new investor or the project moving to another team. A cancellation has not been announced either.

Gang of Dragon was pitched as an action-adventure set in Kabukicho, Tokyo's famous nightlife district. According to the studio's press release, Korean actor Ma Dong-seok (Don Lee) played Shin Ji-seong, a high-ranking member of a Korean crime syndicate. Combat mixed brutal hand-to-hand fighting, blades and guns, along with high-speed car chases through the city.

At the reveal, Nagoshi said the game depicted "with unwavering honesty" the lives of outlaws on Kabukicho's real streets, and that the teaser showed only a small part of what the game had in store. Nothing more was shared after that trailer.

What it means for Yakuza fans

Nagoshi created the Yakuza series at SEGA's RGG Studio, and Gang of Dragon's gritty city setting drew plenty of interest from that fanbase. With the studio gone, this spiritual cousin of the series is on hold at best.

According to Anime News Network, Nagoshi served as CEO, with former Yakuza producer Daisuke Sato on board as a producer. The studio aimed to build big console games for a global audience. Gang of Dragon was its first and only announced project.

RGG Studio, meanwhile, keeps moving. Read the latest on its next game in Stranger Than Heaven cheat items and difficulty. For more studio news, see our stories on id Software and Turn 10 Studios.

Frequently asked questions

Why did Nagoshi Studio shut down?

No official reason has been given. Bloomberg reported in March 2026 that NetEase planned to cut the studio's funding from May. The studio was dissolved by a shareholders' resolution on October 31, according to a notice in Japan's Official Gazette on November 2.

Is Gang of Dragon cancelled?

Not officially. There has been no announcement of a cancellation, a transfer to another developer or continued development. The Steam page is still live with a "coming soon" release date.

Who is Toshihiro Nagoshi?

Toshihiro Nagoshi is the creator of SEGA's Yakuza (Like a Dragon) series. After leaving SEGA, he founded Nagoshi Studio in Tokyo with funding from NetEase Games.

Sources

• Gematsu: Nagoshi Studio shuts down
• AUTOMATON: Nagoshi Studio officially dissolved as of October 31
• Inven Global: Nagoshi Studio dissolves, Gang of Dragon uncertain
• Nagoshi Studio: Gang of Dragon press release
• Anime News Network: Nagoshi Studio Reveals Gang of Dragon
• Steam: Gang of Dragon store page