Nagoshi Studio, from the creator of the Yakuza series, officially shuts down

It’s unclear what will happen to the studio’s work on Gang of Dragon.

Nagoshi Studio

Less than a year after the announcement of its first game Gang of Dragon, Nagoshi Studio has officially closed its doors. The studio, which was founded by Toshihiro Nagoshi of Yakuza franchise fame, announced its conclusion in the Japan government's official gazette Kanpo, stating the company was dissolved on October 31 during a shareholders meeting.

After the success of the Yakuza series, Nagoshi went on to create Nagoshi Studio and began work on Gang of Dragon, releasing the game's first trailer in December 2025. The upcoming game looked to be an evolution of the franchise that still covered the organized crime scene in Tokyo's Kabuchiko district through the lens of the new protagonist, Shin Ji-Seong, but potentially with a more serious tone. Despite the hype from the trailer, one of the game's backers, NetEase, decided to pull funding from the studio, according to a Bloomberg report. The game reportedly still needed more than $44 million to reach the finish line, so Nagoshi Studio was looking for financial support elsewhere to complete the game.

However, now that the company has official shut down, Nagoshi Studio will start liquidating its assets and sorting out liabilities, according to its notice published in Kanpo. The game's Steam store page is still live, but it's unlikely that Gang of Dragon will make it out of development limbo anytime soon.