Nagoshi Studio Dissolved on October 31 After Gang of Dragon Reveal

Nagoshi Studio, the NetEase-backed developer founded by Yakuza and Super Monkey Ball creator Toshihiro Nagoshi, has been shut down. A notice in the Japanese government gazette Kanpo, reported via Gematsu, confirms the studio was dissolved on October 31. Neither Nagoshi nor the studio has posted on social media since the start of the year, and no official statement has been issued.

The closure follows a troubled stretch for Gang of Dragon, the studio's debut game. It was unveiled at The Game Awards in 2025 with a trailer starring Train to Busan actor Ma Dong-seok. Earlier this year, reports said NetEase was pulling funding after reportedly learning the game would need an extra 7 billion yen. Nagoshi Studio's YouTube channel and website were taken down, and co-founder Daisuke Sato changed his Twitter bio to say "ex-Nagoshi Studio," casting doubt on the project and the team.

Nagoshi founded the studio with Sato after leaving Sega following an over 30-year career. That departure came after the releases of Yakuza: Like a Dragon and Lost Judgement. The dissolution notice arrives just over five years since Nagoshi left Sega.

NetEase has been reducing investment across several teams. Worlds Untold, founded by Mass Effect writer Mac Walters, and Jar of Sparks, founded by former Halo lead Jerry Hooks, have both had funding pulled. Grasshopper Manufacture, the Suda 51-founded studio owned by NetEase, self-published Romeo Is a Dead Man and split from the publisher to go independent just over a month ago.

For players, Gang of Dragon's future remains unclear, and Nagoshi's next move is unknown.