Nagoshi Studio, the developer behind the Don Lee-led action game Gang of Dragon, officially dissolved on October 31, 2026, following a shareholders’ resolution. The closure leaves the game’s future in doubt less than a year after its reveal at The Game Awards in December 2025.
Key points
- Nagoshi Studio dissolved on October 31, 2026, via a shareholders' resolution, confirmed in a Kanpo gazette notice published November 2.
- NetEase Games cut funding in March 2026 after the studio requested an extra ¥7 billion, about $44.4 million, to finish development.
- Founder Toshihiro Nagoshi and director Daisuke Sato stepped down as directors on March 31, 2026.
- Gang of Dragon's Steam page remains online with a "Coming soon" listing despite the studio's closure.
- Lead actor Don Lee remains attached to Hideo Kojima's upcoming title Physint.
The shutdown matters to players who were tracking one of the more high-profile successors to the Like a Dragon (Yakuza) series, given that founder Toshihiro Nagoshi created and directed that franchise for years at Sega. Its collapse also underscores how Chinese publishers, including NetEase Games, have pulled back from funding ambitious overseas console projects.
Gazette Notice Confirms the Dissolution
The dissolution was published in Extra Edition No. 240 of Kanpo, the Japanese government’s official gazette, on November 2. The notice names Minoru Morinaga as representative liquidator, the person tasked with winding down the company’s remaining affairs. Nagoshi Studio’s website and YouTube channel had already gone offline earlier in 2026, well before the formal dissolution.
NetEase Pulled Funding After a ¥7 Billion Request
According to a March 2026 Bloomberg report, NetEase Games moved to cut financial support for Gang of Dragon after learning the project needed an additional ¥7 billion, roughly $44.4 million, to reach completion. That request reportedly triggered the studio’s decline. Toshihiro Nagoshi and director Daisuke Sato stepped down as directors on March 31, 2026, days after the funding dispute became public.
NetEase reportedly offered Nagoshi Studio a path to continue independently, but only if the studio paid to retain the game’s assets and branding. The publisher said it was open to negotiating a deal, provided the studio could cover those costs on its own. No agreement materialized, and Nagoshi Studio failed to line up a replacement sponsor before shutting down entirely.
Industry Observers Saw the Collapse Coming
Andy Robinson of VGC said the studio had effectively ceased operating well before the formal dissolution.
