Nagoshi Studio, founded by Yakuza series creator Toshihiro Nagoshi in 2021, has officially ceased operations. The studio's first announced game, Gang of Dragon, has also been canceled. The closure was revealed via a notice on the Japanese government's Kanpo website, as reported by Gematsu.
Nagoshi established the studio after a long tenure at Sega, aiming to create new gaming experiences. Gang of Dragon was unveiled at The Game Awards 2025 with a CGI trailer featuring actor Ma Dong-seok. However, the project faced significant setbacks when NetEase, which had been providing funding, withdrew its support as part of a broader strategic shift away from external studios.
Despite efforts to secure alternative funding, Nagoshi Studio was reportedly unsuccessful. This led to the disappearance of the studio's website several months prior to the official closure announcement. While the Steam page for Gang of Dragon remains active, the cancellation of the project appears final, leaving the studio's future uncertain.