Nagoshi Studio Closes and Gang of Dragon Is Dead After NetEase Cut Funding
Toshihiro Nagoshi's studio has been dissolved, per a Japanese government notice, and its Yakuza-style PS5 game Gang of Dragon will not be released.
Nagoshi Studio, the Tokyo developer founded by Yakuza creator Toshihiro Nagoshi, has officially shut down. Its first game, Gang of Dragon, is gone with it. The news comes from a notice in the Japanese government gazette Kanpo, which both Eurogamer and Push Square cite.
Key facts
- Nagoshi Studio was dissolved by a shareholders' resolution as of 31 October 2026, Push Square reports.
- The closure appeared in Japan's government gazette, Kanpo.
- Gang of Dragon, its debut game planned for PS5, will not be released.
- NetEase pulled funding months ago, according to earlier reports.
Push Square says the notice, which it spotted via Gematsu, shows the studio was dissolved by a shareholders' resolution on 31 October 2026. Eurogamer is more cautious about the game itself. It says Gang of Dragon is "seemingly no more", while Push Square states flatly that the game will never be released.
What happened to Gang of Dragon
Gang of Dragon was revealed at The Game Awards 2025 and planned for PS5, according to Push Square. It was pitched as a melee-based action-adventure set in Shinjuku, Tokyo.
The story centered on Shin Ji-seong, a high-ranking member of a Korean crime syndicate based in Kabukicho. He was to be played by actor Ma Dong-seok, known for films such as Train to Busan and Marvel's Eternals, Eurogamer notes.
Neither source mentions any plan to revive the game, sell it or move it to another publisher. Eurogamer says not much is known about the project beyond its debut trailer.
Why the studio lost its funding
Nagoshi opened the studio in 2021, Eurogamer says. Reports dating back to March 2026 said publisher NetEase had stopped funding the project.
Those reports claimed the game needed a large amount of extra money to finish. Push Square cites ¥7 billion (about $44 million). Eurogamer cites £33.1 million (about $44.4 million at the time). Both outlets describe these as past reports rather than confirmed figures, and Eurogamer says NetEase "purportedly" did not want to pay.
Eurogamer adds that employees were told months ago that the studio's future was at risk. Both outlets say NetEase has been scaling back its international game investments.
A wider pattern for NetEase
Eurogamer lists several other casualties of that retreat:
- Ouka Studios, the Visions of Mana developer, was shut down just after launching its action game.
- Worlds Untold, a studio formed by Mass Effect veteran Mac Walters, had to pause operations to find a new partner.
- Halo Infinite lead Jerry Hook's studio ran into very similar issues last year.
Not every studio has closed. Eurogamer notes that Suda51's Grasshopper Manufacture survived through a management buyout and now operates independently.
What it means for you
If you were waiting for Gang of Dragon on PS5, there is nothing left to wait for. Neither source gave a release date, and no platform listing or pre-order is mentioned, so there is nothing to cancel. Any new word on Nagoshi's next move would have to come from him or an official announcement, and neither source reports one.
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Quick answers
Is Gang of Dragon cancelled?
Push Square says the game will never be released after the studio's dissolution. Eurogamer says it is "seemingly no more". Neither source quotes a statement from Nagoshi or NetEase.
Who made Gang of Dragon?
It was developed by Nagoshi Studio, founded by Toshihiro Nagoshi, who is often cited as the creator of the Yakuza series. NetEase was the publisher funding it.
Was Gang of Dragon coming to PS5?
Yes. Push Square describes it as a PS5 game. Eurogamer does not list platforms.
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