Nagoshi Studio Closes Its Doors: Yakuza Creator's Venture Ends Before Game Release

Nagoshi Studio, the brainchild of renowned Yakuza creator Toshihiro Nagoshi, has officially closed its doors, marking the end of an ambitious venture that aimed to bring a new Yakuza-style crime drama to life. The studio, which was founded in 2022, ceased operations on October 31, 2026, as reported in the Japanese government gazette Kanpo ²³.

The closure comes as a significant blow to the gaming world, particularly for fans of the Yakuza series, as Nagoshi Studio was working on a highly anticipated game titled 'Gang of Dragon'. This project, which featured South Korean actor Ma Dong-seok in a starring role, was showcased at the 2025 Game Awards with a cinematic trailer, generating excitement among players ¹. However, the ambitious scope of the game, estimated to cost 7 billion yen ($44 million), proved to be its undoing ¹³.

NetEase, the primary backer of Nagoshi Studio, withdrew funding for 'Gang of Dragon' in March, citing the high cost of the project as the reason for their decision ²³. Despite Nagoshi's efforts to secure additional backing, the studio was unable to find the necessary funds to complete the game, leading to its eventual closure ¹. The studio's shareholders made the decision to shut down the operation, bringing an end to Nagoshi's attempt to create a new chapter in the Yakuza universe ².

Nagoshi Studio was established by Toshihiro Nagoshi and other key members from Sega’s Ryu Ga Gotoku Studio, where he had spent over three decades crafting beloved titles such as the Yakuza and Like a Dragon series ¹²³. The studio's formation marked a new beginning for Nagoshi, who sought to create a game that would stand alongside his previous works. However, the financial challenges faced by NetEase, which had been reducing its gaming portfolio and selling off overseas investments since 2024, ultimately led to the studio's downfall ¹.

In the months leading up to the closure, Nagoshi Studio faced technical issues with its YouTube channel and website, further complicating its efforts to maintain public interest in 'Gang of Dragon' ². Despite these setbacks, the studio managed to capture the imagination of many gamers with its cinematic trailer, showcasing the potential for a new era in Yakuza-style storytelling.

What We Know

• Nagoshi Studio, founded by Toshihiro Nagoshi, has officially closed ¹²³
• The closure occurred on October 31, 2026 ¹²³
• The dissolution was officially recorded in the Japanese government gazette Kanpo on October 31 ²³
• The closure happened before the studio released a game ³
• 'Gang of Dragon' was projected to cost 7 billion yen ($44 million) to complete ¹³
• NetEase had withdrawn funding for 'Gang of Dragon' in March ²³
• NetEase ceased support due to the high cost of 'Gang of Dragon' ¹
• Nagoshi Studio could not secure additional backing for 'Gang of Dragon' ¹
• 'Gang of Dragon' is described as a Yakuza-style crime drama starring Ma Dong-seok ¹
• 'Gang of Dragon' was showcased at the 2025 Game Awards with a cinematic trailer ¹
• Nagoshi Studio was established in 2022 by Toshihiro Nagoshi and other key members from Sega’s Ryu Ga Gotoku Studio ¹
• Nagoshi Studio was shut down by its shareholders ²
• Nagoshi Studio was formed by Toshiro Nagoshi at NetEase ²
• Nagoshi Studio worked on a game called 'Gang of Dragon' which resembled Yakuza and Like a Dragon series ²
• Nagoshi sought an additional $44 million to complete 'Gang of Dragon' ²
• Nagoshi Studio was founded in 2022 ³
• NetEase provided initial funding for Nagoshi Studio ³
• NetEase has been reducing its gaming portfolio and selling off overseas investments since 2024 ¹
• Toshihiro Nagoshi had a long career at Sega, spanning over three decades ¹
• 'Gang of Dragon's YouTube channel and website experienced issues in April and May respectively ²
• Ryu Ga Gotoku Studio released five games in the Yakuza/Like a Dragon franchise after Nagoshi left ²
• Upcoming game 'Stranger Than Heaven' is described as a distant prequel to Like a Dragon spanning 50 years ²