Nagoshi Studio, founded by veteran developer Toshiro Nagoshi, has been dissolved before releasing its first game, Gang of Dragon. Shareholders officially dissolved the studio on October 31, with the resolution later published in the Japanese government gazette Kanpo.
Gang of Dragon was described as a new game that bore a resemblance to Nagoshi's previous work on Sega's Yakuza and Like a Dragon series at Ryu Ga Gotoku Studio. A trailer for the game was showcased at The Game Awards last year. However, reports in March indicated that NetEase, the parent company, had pulled funding for the project. The official Gang of Dragon YouTube channel was briefly taken offline in April, and its website was removed in May.
While specific reasons for the studio's closure have not been officially disclosed, Bloomberg reported in March that Nagoshi was seeking an additional $44 million to complete Gang of Dragon. This figure may have been deemed too high for NetEase to continue investing in.
Since Nagoshi's departure from Sega, his former studio, RGG Studio, has released several titles. Nagoshi's final credits at Sega include Lost Judgment, Super Monkey Ball Banana Mania, and Virtua Fighter 5: Ultimate Showdown. RGG Studio has since launched five games in the Yakuza/Like a Dragon franchise, including prequels, sequels, and remakes: Like a Dragon: Ishin, Like a Dragon Gaiden: The Man Who Erased His Name, Like a Dragon: Infinite Wealth, and Yakuza Kiwami 3 & Dark Ties. The studio is also set to release Stranger Than Heaven next year, which is described as a distant prequel to the Like a Dragon series spanning 50 years.