Gang of Dragon developer Nagoshi Studio has officially shut down.

The Setup: A New Studio Led by the Mind Behind Yakuza

Nagoshi Studio was formed by Toshiro Nagoshi, the mind behind the Yakuza games, which made its first public reveal a notable moment for fans of the series. That reveal came during 2025's Game Awards, where the studio showed its new game, Gang of Dragon, to the world.

The project generated excitement not only among Yakuza fans but also among a wider audience because of its cast. The trailer featured Ma Dong-seok, also known as Don Lee, who played roles in Death Stranding 2 and Marvel's Eternals, in the game's lead roles. Behind the visible ambition was NetEase funding, which helped make Gang of Dragon such an ambitious project.

Early 2026: NetEase Funding Ends Without Public Explanation

The positive buzz did not last. During the first few months of 2026, NetEase pulled the studio's funding. The reason remains unknown, especially considering the successful reveal and the attention the trailer had generated.

That decision marked the turning point in the studio's short life. Once the funding disappeared, the public presence around Nagoshi Studio and Gang of Dragon began to collapse.

Silence, Offline Trailer, and Reports of Halted Development

After NetEase pulled support, Nagoshi's YouTube channel and the Gang of Dragon reveal trailer were taken offline. For fans waiting for updates, that was a clear warning sign. Those excited for the new game, and whatever else Nagoshi might release, started to worry.

A few weeks later, reports began to circulate claiming that all development at the studio had ceased. The situation then moved into an extended period of uncertainty. Exactly one month before the official announcement, reports said the developer had shut down after ten months of radio silence. Another six months passed before the studio's fate was formally recorded.

October 31, 2026: Dissolution Becomes Official

On October 31, 2026, the Japanese government gazette Kanpo announced that Nagoshi had been dissolved via shareholder resolution, as first highlighted by Gematsu.

That means less than 11 months after the new studio showed its first game to the world during 2025's Game Awards, Nagoshi Studio no longer exists. The official record closes the chapter that began with the studio's formation and the reveal of Gang of Dragon.

What This Means for Gang of Dragon

With the studio officially dissolved, the outlook for Gang of Dragon is effectively over. Whatever work had been done on the game has likely been scrapped, and it will be another game that will never see the light of day.

The last hope had been independence. Even though the situation seemed hopeless from the moment murmurs emerged that NetEase was pulling the plug, there had been hopes over the previous six months that Nagoshi might find a way to remain independent and fund Gang of Dragon itself. Those hopes have now been officially snuffed out.

Current Stage: From Silence to Confirmed Closure

At this point, the timeline has moved from rumor to official confirmation. The key unresolved detail remains why NetEase withdrew funding despite the successful reveal and the attention brought by Ma Dong-seok's involvement.

For readers tracking the studio, the final stage is no longer speculation. Nagoshi Studio has been dissolved, Gang of Dragon's public trail has ended with offline videos and ceased development reports, and the project that debuted at 2025's Game Awards has become one of the most prominent canceled games of 2026.