Nagoshi Studio, founded by Toshihiro Nagoshi, creator of the franchise Yakuza, was formally dissolved on October 31, 2026, before releasing its first game. The shareholders' decision was announced this Monday (2), through a notice published in the Kanpo, the official gazette of the Japanese government.
The document confirms the start of the liquidation process of the company, headquartered in Tokyo, and identifies Minoru Morinaga as responsible for the liquidation. The notice does not state the reasons for the dissolution.
Founded in 2021, after Nagoshi's departure from Sega, the studio had the support of the Chinese company NetEase Games. Its main project was Gang of Dragon, an action-adventure game presented in December 2025 during The Game Awards.
The dissolution comes after months of financial uncertainty. In March 2026, Bloomberg reported that NetEase would end the studio's financing starting in May, as part of a reduction in investments in game development. According to the report, the company could seek independence if it managed to finance its exit from NetEase's structure.
Future of Gang of Dragon remains without official confirmation
Set in Kabukicho, Tokyo's entertainment district, Gang of Dragon would star South Korean actor Ma Dong-seok, also known as Don Lee. The project would mark Nagoshi's first major release after his departure from Sega, where he built his career linked to the franchises Yakuza and Like a Dragon.
Despite the dissolution of the developer, the definitive cancellation of Gang of Dragon was not officially announced. There is also no confirmation that another company will take over development.
As of November 2, Nagoshi and NetEase had not presented a public position clarifying the fate of the game.
