Nagoshi Studio Is Very Likely to be "Gone" as Revealed by VGC

Nagoshi Studio, the division founded by legendary Yakuza creator Toshihiro Nagoshi, officially began full-scale work in January 2022, as announced by publisher NetEase. Now, though, it looks like the studio's winding down entirely, without ever shipping its debut project.

Gang of Dragons, Nagoshi Studio's debut title, was announced at The Game Awards 2025, but the news since then hasn't been encouraging. According to VGC's Andy Robinson, speaking on a recent podcast, Nagoshi Studio has essentially ceased to exist, with Nagoshi himself reportedly already job-hunting.

Nagoshi Studio, founded by Yakuza creator Toshihiro Nagoshi, is reportedly “gone” after nearly 10 months of silence.

NetEase pulled its funding, leaving Nagoshi seeking about $45 million to finish the game.

VGC reporter Andy Robinson says Nagoshi Studio is effectively no more: “Nagoshi Studio, it’s not been announced, but that’s gone.” He also heard Toshihiro Nagoshi has recently been applying for jobs at other studios.

Over the year, reports emerged that the studio had closed its main Tokyo office, followed in June by news that key developers had departed, too. The situation reportedly stems from NetEase pulling funding for Gang of Dragons as part of a broader push to cut back on investments. The game was claimed to need more than $40 million to finish development, an amount NetEase apparently saw as too risky to commit to.

Without some kind of rescue, perhaps Nagoshi Studio ending up under a different publisher with another studio taking over, Gang of Dragons looks at a real risk of cancellation. The game itself is a AAA action-adventure set in Japan, primarily in the real-world Kabukicho district, known for its nightclubs and underworld ties. It follows Shin Ji-seong, played by Ma Dong-seok, as he gets caught between rival factions while forming personal connections that ultimately reshape how he sees the world.