Yakuza creator's studio officially dissolved as Gang of Dragon's future hangs in the balance

The studio founded by Yakuza creator Toshihiro Nagoshi has officially been dissolved, leaving the future of its debut game, Gang of Dragon, uncertain. The development follows months of questions over the project's funding, with the Tokyo-based developer closing before releasing its first title.

According to Gematsu, Nagoshi Studio was dissolved following a shareholders' resolution on 31 October 2026, as recorded in Japan's official government gazette, Kanpo, on 2 November. The dissolution was also reported by AUTOMATON WEST.

Nagoshi established the NetEase-backed studio after leaving Sega in 2021, where he had helped shape the Yakuza franchise, now known internationally as Like a Dragon. The developer unveiled Gang of Dragon at The Game Awards in December 2025, introducing a cinematic action adventure set in Tokyo's Kabukicho entertainment district.

The game stars South Korean actor Ma Dong-seok, also known as Don Lee, whose film credits include Train to Busan and Marvel's Eternals. Its announcement marked Nagoshi's return to the Japanese crime-game setting that helped establish his reputation, albeit under a new studio and publisher.

Funding concerns preceded the closure

The studio's difficulties had surfaced well before the official dissolution. In March 2026, Bloomberg reported, as detailed by Video Games Chronicle, that NetEase intended to withdraw funding from the project.

According to the report, Gang of Dragon required approximately ¥7 billion (around US$44.4 million at the time) in additional funding to reach completion. Gematsu also reported that the studio had the option to pursue independence, provided it could fund its exit from NetEase.

With Nagoshi Studio now dissolved, the question is what happens to the unfinished game. Its Steam listing has remained online, but a storefront entry is no guarantee of a future release.

Importantly, NetEase has not publicly confirmed the cancellation of Gang of Dragon, and no arrangement for another developer to complete the project has been announced.

For a game built around the creator of Yakuza and a leading action-film star, the closing credits may have arrived considerably earlier than anyone anticipated. Whether the project itself has reached its final chapter remains an open question.