- Nagoshi Studio has officially dissolved following a shareholder's resolution on October 31, 2026.
- The future of Don Lee-led Gang of Dragon remains though its Steam page is still live.
- This follows earlier reports that Nagoshi Studio needed an additional $44 million from NetEase to complete the game.
Nagoshi Studio, the developer behind the Don Lee-led action-adventure game Gang of Dragon, officially shut down on October 31, 2026, leaving the game’s future uncertain. The studio announced Gang of Dragon as part of The Game Awards 2025 announcements last December, so the shutdown comes less than a year after the reveal.
Toshihiro Nagoshi’s NetEase-funded studio officially dissolved following a shareholders’ resolution, according to a notice published in November 2’s Kanpo, the Japanese government gazette. However, the closure didn’t come entirely out of the blue.
Back in March 2026, Bloomberg reported that NetEase Games planned to cut funding for Gang of Dragon after learning the game needed another ¥7 billion (around $44.4 million) to complete development, which practically started the studio’s downfall.
Furthermore, before the shutdown, NetEase reportedly told the studio it could continue independently, but it would have to pay to keep the game’s assets and branding. The publisher was willing to negotiate, provided Nagoshi Studio could cover the costs itself, but that didn’t work out.
Unfortunately, Nagoshi Studio couldn’t secure any new sponsors or reach an agreement with NetEase before shutting down. Gang of Dragon’s Steam page is still up, but it’s unclear what will happen to the game now.
Meanwhile, you can catch Don Lee (Ma Dong-seok) next as part of Hideo Kojima’s PHYSINT cast, alongside Bill Skarsgard, Charlee Fraser, and Minami Hamabe. Toshihiro Nagoshi founded Nagoshi Studio in 2021 after leaving RGG Studio, where he created the Like a Dragon series and served as general director.
NetEase backed the new studio and its first project, Gang of Dragon, an action-adventure game inspired by the best Yakuza games. It stars Ma Dong-seok as Shin Ji-seong and takes players into the criminal underworld of Shinjuku’s Kabukicho district in Japan. Following the studio’s shutdown, it’s unclear if the game will release at all.
Meanwhile, RGG Studio is gearing up to release Stranger Than Heaven, its upcoming action-adventure game on January 15, 2027. That said, what do you think about Nagoshi Studio’s shutdown? Tell us in the comments section below.
