Nagoshi Studio, the development studio founded by Like a Dragon creator Toshihiro Nagoshi, has officially shut down, bringing an end to the developer’s attempt to establish itself outside SEGA. The closure was confirmed following a shareholders’ resolution on October 31, according to a notice published in Japan’s Official Gazette.
The studio was established in November 2021 with funding from NetEase Games after Nagoshi departed SEGA, where he had spent years working on the Yakuza and Like a Dragon franchises. Expectations were understandably high for his next project, particularly after Nagoshi Studio unveiled its debut game, GANG OF DRAGON, at The Game Awards in December 2025.
Starring South Korean actor Ma Dong-seok (Don Lee), GANG OF DRAGON was presented as an action-adventure game set in Tokyo’s Kabukicho district, exploring the criminal underworld through the eyes of protagonist Shin Ji-seong. The reveal offered a glimpse of what Nagoshi hoped to accomplish with his new studio, but the project would soon run into significant financial difficulties.
In March 2026, Bloomberg reported that NetEase planned to withdraw its financial support for Nagoshi Studio beginning in May. The decision reportedly followed the discovery that GANG OF DRAGON would require at least an additional seven billion yen (approximately $44.4 million) to complete. Nagoshi was subsequently said to be seeking additional investors to keep development moving forward.
There was also the question of what would happen to the game’s existing development assets and intellectual property. According to the earlier reports, NetEase was willing to let Nagoshi Studio pursue independence, but retaining its existing assets and brand would require the studio to cover the associated costs. This created another obstacle for a developer already facing considerable financial pressure.
The warning signs continued over the following months. Nagoshi Studio’s official website went offline in May, while reports also indicated that key development personnel had departed. By October, Japanese media were reporting changes to the company’s corporate leadership, further suggesting that the studio’s future was in serious doubt.
Now, the October 31 shareholders’ resolution has formally confirmed the company’s dissolution. It is worth distinguishing this from bankruptcy, however, as the dissolution process involves winding down the corporate entity rather than necessarily indicating insolvency.
Unfortunately, the future of GANG OF DRAGON remains unclear. Although Nagoshi Studio is now officially dissolved, the game’s Steam page remains available, with its release date still listed as to be announced. There has been no formal announcement confirming the game’s cancellation, nor has there been any confirmation that another developer or publisher has taken over the project.
The closure is an unfortunate end to Nagoshi’s first major undertaking after leaving SEGA, particularly considering the anticipation surrounding his return to the crime-action genre. Whether GANG OF DRAGON can eventually find a new home remains to be seen, but for now, the project that was supposed to introduce the next chapter of Nagoshi’s career is left without a clear path forward.