Nagoshi Studio, founded by Toshihiro Nagoshi, the acclaimed creator of the Yakuza series, has officially ceased operations. The studio's debut game, Gang of Dragon, is also presumed canceled after its publisher, NetEase, withdrew funding.
The closure was confirmed in the Japanese government gazette, Kanpo. This development follows reports several months ago that the studio's future was in jeopardy due to NetEase's funding cuts. Nagoshi Studio was reportedly seeking an additional £33.1 million to complete Gang of Dragon, a sum NetEase declined to provide.
This situation mirrors other recent setbacks for studios backed by NetEase, which has been scaling back its international investments. Ouka Studios, the developer behind Visions of Mana, was shut down shortly after its game's release. Worlds Untold, a studio formed by Mass Effect veteran Mac Walters, had to pause operations to find a new partner, and Jerry Hook's studio, which was working on a game for NetEase, also encountered similar funding issues last year.
Gang of Dragon was revealed nearly a year ago, with its debut trailer showcasing the signature crime and drama associated with Nagoshi's previous work. The game also featured actor Ma Dong-seok, known for his roles in "Train to Busan" and Marvel's "Eternals." Little else is known about the game's development status prior to the funding withdrawal and subsequent studio closure.
In contrast, some developers have found alternative paths. Suda51's Grasshopper Manufacture successfully navigated a management buyout, allowing it to continue as an independent developer.