Nagoshi Studio closes before releasing first game Gang of Dragon

Nagoshi Studio has officially ceased its operations before the release of its first title.

Tecmundo reported that the studio was dissolved on October 31, as stated in the Kanpo, the official government gazette of Japan. The company was developing an action game called Gang of Dragon, which was first presented during The Game Awards 2025. The project featured a protagonist played by actor Ma Dong-seok and contained urban settings and street combat elements similar to the Yakuza franchise.

The closure follows a decision by NetEase, the Chinese company that funded the studio, to stop financing the project. This decision became public in March 2026 after NetEase reportedly discovered that Gang of Dragon required at least 7 billion yen, or approximately 44.4 million US dollars, to be completed. This cut was part of a broader strategy by NetEase to reduce its international game development presence.

Following the loss of funding, the studio attempted to find new financial partners, but these negotiations were unsuccessful. NetEase reportedly allowed the team to continue the project independently if they could cover the costs of maintaining the brand and assets, but the lack of new funding made the future of the game uncertain.

NetEase has previously closed other studios, including T-Minus, FPC, Bad Brain, Worlds Untold, and Jar of Sparks. Additionally, Ouka Studio closed in 2024. In contrast, Grasshopper Manufacture ended its partnership with NetEase in September 2026 to operate independently. There is currently no confirmation that another company has acquired the rights to Gang of Dragon.