Nagoshi Studio, the game development company founded by former Sega creative chief Toshihiro Nagoshi, has reportedly shut down after NetEase reduced its financial support for the studio’s project, Gang of Dragon. The company’s dissolution appears in a report of corporate closures published in Japan’s official government gazette, Kanpo.
Gang of Dragon was unveiled at The Game Awards in Los Angeles last December. The game was presented as a spiritual successor to the Like a Dragon, formerly Yakuza, series that Nagoshi helped create at Sega. Since the announcement, however, development has reportedly been affected by cuts to NetEase’s funding.
Nagoshi left Sega in 2021, when he was serving as the company’s chief creative officer and leading its Ryu Ga Gotoku Studio. He founded Nagoshi Studio that same year under NetEase. According to a Bloomberg report published in March, the project required an additional ¥7 billion, equivalent to approximately $44.5 million, to reach completion. The funding reduction reportedly coincided with NetEase scaling back its activities in the gaming sector.
Nagoshi Studio is among several companies that have recently separated from NetEase, alongside Goichi Suda’s Grasshopper Manufacture and Anchor Point Studios. NetEase has not officially canceled Gang of Dragon, but its future is uncertain following the reported closure of the studio.
Nagoshi has not made public statements since the game’s reveal. The Nagoshi Studio YouTube channel was deleted during the summer and later restored, although its videos—including the Gang of Dragon announcement trailer—were made private.
Sources: Game Developer.