Japan’s official gazette has confirmed that Nagoshi Studio dissolved on 31 October 2026, without ever releasing a game. The Tokyo developer was founded by Yakuza creator Toshihiro Nagoshi under NetEase Games. Its shareholders voted to dissolve the company that day, according to a notice in the gazette, Kanpo, which was first spotted by Gematsu. Here’s what happened, what it means for its only announced game, Gang of Dragon, and why it matters for the wider industry.
Nagoshi Studio dissolved: what the notice says
Kanpo’s 2 November edition reported that Nagoshi Studio Inc. had been dissolved by a resolution at a shareholders’ meeting on 31 October, Anime News Network reports. Gaming Route, which translated the notice, says the company is now in liquidation. Creditors have two months to come forward with claims, and the notice is signed by the company’s representative liquidator.
Under Japanese company law, dissolution starts the wind-down; it doesn’t finish it. A liquidator settles the company’s debts and assets before it’s formally struck off. According to Gaming Route, the two-month creditor window means the liquidation can’t be completed before early January 2027.
How we got here
A high-profile start
Nagoshi spent more than three decades at Sega, where he created the Yakuza (Like a Dragon) series. He left Sega in October 2021, and NetEase announced Nagoshi Studio in January 2022, with Nagoshi as president and CEO. The studio was based in Shinjuku, Tokyo.
Gang of Dragon
The studio’s first and only announced game, Gang of Dragon, was revealed at The Game Awards in December 2025. It was an action-adventure set in Tokyo’s Kabukicho district and starred Korean actor Ma Dong-seok (Don Lee). Gematsu notes that it looked a lot like Nagoshi’s earlier work on Sega’s Yakuza games.
The funding stopped
In March 2026, Bloomberg reported that NetEase would stop funding the studio from May. A NetEase spokesperson confirmed that to Bloomberg. Bloomberg’s sources said the game needed about ¥7 billion (roughly $44 million) more to finish. NetEase reportedly gave the studio the option to go independent if it could pay its way out. No new backer was announced. GameSpot notes that the game’s YouTube channel briefly went down in April and its website went offline in May.
What happens to Gang of Dragon?
Nobody has officially cancelled Gang of Dragon. Gaming Route says its Steam page was still live on 2 November, listed as “Coming soon” for Windows, and it never had a release date or price. Neither NetEase, the studio nor Nagoshi had commented when Gaming Route checked.
The practical picture, though, is bleak. The game’s developer and publisher is now in liquidation, so there’s no visible route to release unless someone buys its assets, and no buyer has been announced. GameSpot’s headline puts it bluntly: Gang of Dragon “won’t be any game at all”.
Part of a bigger pattern
Nagoshi Studio isn’t the first Japanese team NetEase has cut back. Anime News Network points out that NetEase laid off most staff at Ouka Studios, the Tokyo developer of Visions of Mana, in 2024, and the studio closed later that year. Bloomberg has described NetEase’s approach as a broader strategy to shrink its game development activities.
Smaller studios are struggling too. In the same news cycle, Danish developer Raw Power Games said it had lost its funding and was “at real risk of closing” before its large-scale medieval battle game, Chronicles: Medieval, reaches early access, Warp Pipes reports.
Why it matters
- Big names aren’t enough. Even a creator with a famous series behind him couldn’t get a new game finished without continued funding.
- Publisher strategy shapes what we play. When a large publisher changes direction, projects that are years into development can disappear.
- Wishlists aren’t guarantees. A live store page doesn’t mean a game is still in development. Players should watch for official updates before pre-ordering or paying for anything.
We’ll keep following the story in our Industry News section, alongside the day’s headlines in News. If you’re new to GoPlays11, our guide to the different GoPlay brands explains who we are and who we aren’t.
Quick FAQ
When was Nagoshi Studio dissolved?
Its shareholders voted to dissolve it on 31 October 2026. The notice appeared in Japan’s Kanpo gazette on 2 November.
Is Gang of Dragon cancelled?
There’s been no official cancellation, but with its studio in liquidation and no buyer announced, it has no clear route to release.
Who owned Nagoshi Studio?
It was set up under NetEase Games, which stopped funding it in May 2026, according to Bloomberg.