Nagoshi Studio Is Officially Shut Down, and Gang of Dragon Has Been Cancelled

After BioWare’s shutdown last month, another game studio is reported to be closing. This one was founded only recently and revealed its debut project last year, but that project has now been canceled.

It’s about Nagoshi Studio, founded by Toshihiro Nagoshi, the creator of Yakuza. Rumors of its closure, caused by publisher NetEase stopping its investment, had been circulating online for a while. Japanese media have now published a new report confirming that Nagoshi Studio has closed completely. As a result, Gang of Dragon, announced at The Game Awards 2025, has been canceled.

BREAKING: Nagoshi Studio Has Officially Shut Down.

Founded by former SEGA veteran Toshihiro Nagoshi in 2022, the studio was developing Gang of Dragon, revealed at The Game Awards 2025.A disappointing end to a studio with so much potential.

Nagoshi Studio reportedly needed to raise around $40 million to develop Gang of Dragon, since NetEase stopped funding the team this May. Over the following months, the game’s YouTube channel was taken down, the website stopped working, and the studio’s head office was closed.

According to available information, Gang of Dragon was an AAA action-adventure set in Japan, mainly in the real-life Kabukicho district, which is famous for its nightclubs and mafia showdowns. It follows Shin Ji-seong (Ma Dong-seok), who gets caught in a struggle between rival factions but also forms deep personal bonds that change his outlook on life.

Unfortunately, a game with such potential has joined the list of permanently canceled projects, and we are unlikely to ever see it in full.