Nagoshi Studio, the development house founded by Yakuza series creator Toshihiro Nagoshi, has officially ceased operations without releasing a single game. The Tokyo-based studio closed via a shareholders' resolution on October 31, according to a report from Gematsu.
The studio's intended debut title was Gang of Dragon, a Yakuza-like game. Nagoshi established Nagoshi Studio in 2022 with financial backing from Chinese company NetEase, following his departure from Ryu Ga Gotoku Studio. However, the future of Gang of Dragon became uncertain in March when NetEase indicated its intention to withdraw funding. This decision reportedly stemmed from the realization that Gang of Dragon required an additional ¥7 billion (approximately $44.4 million) to complete.
Nagoshi had reportedly been seeking new investors to facilitate a buyout, but these efforts appear to have been unsuccessful. The closure of Nagoshi Studio comes less than a year after Gang of Dragon was revealed at The Game Awards in December 2025. The game now faces an uncertain future, with its release unlikely.