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Nagoshi Studio Dissolution Leaves Gang of Dragon in Limbo
Less than five years after Toshihiro Nagoshi set out to build something new beyond SEGA, his independent chapter has come to an abrupt end. Nagoshi Studio, established with backing from NetEase Games after the longtime Yakuza / Like a Dragon creator departed SEGA in 2021, has officially been dissolved following a shareholders’ resolution on October 31.
The move leaves the future of Gang of Dragon particularly uncertain. Revealed at The Game Awards in December 2025, Nagoshi Studio’s debut action-adventure stars South Korean actor Ma Dong-seok, also known as Don Lee, as Korean crime syndicate member Shin Ji-seong navigating the underworld of Tokyo’s Kabukicho district.
It was supposed to mark Nagoshi’s big return after leaving the franchise he helped build, with his plans for previously pointing towards ambitious global projects. Instead, its first game may never reach players.
Japan’s Official Gazette Confirms Nagoshi Studio Dissolution
The end of the studio was formally revealed through a notice published in Japan’s Official Gazette, KanpÅ on November 2. According to the filing, Nagoshi Studio was dissolved by resolution of its shareholders on October 31. Japanese reporting also notes that Minoru Morinaga has been named representative liquidator, with creditors given two months from publication to submit claims.
The distinction is worth making: dissolution begins the formal winding-up process rather than meaning the corporate entity instantly disappears. Nevertheless, the filing effectively confirms the end of the studio as an operating game developer.
NetEase originally announced Nagoshi Studio in January 2022 as a wholly owned subsidiary focused on high-end console games for global audiences, with Nagoshi serving as representative director and CEO.
NetEase Funding Had Already Put Gang of Dragon in Danger
Warning signs emerged much earlier this year. In March, NetEase confirmed plans to stop funding Nagoshi Studio from May as part of a broader retreat from several overseas development investments. Reporting at the time indicated that Gang of Dragon would require at least another 7 billion yen, approximately US$44.4 million, to reach completion.
Nagoshi was reportedly searching for alternative investors, while NetEase was prepared to let the studio become independent if it could cover the necessary costs. A further complication concerned ownership of the game and assets already created under NetEase’s investment, making any potential rescue considerably more difficult.
Those circumstances left Gang of Dragon in limbo months before the dissolution became official.
Gang of Dragon Has Not Officially Been Cancelled
Despite the dissolution, Gang of Dragon has not been formally cancelled. Its Steam store page remains live and continues to list the game as “Coming soon”, with Nagoshi Studio still named as both developer and publisher. The listing describes a third-person action-adventure combining hand-to-hand combat, blades, gunplay and vehicle action throughout Shinjuku.
There has been no announcement of another developer or publisher taking over the project, nor any indication that its existing assets have been acquired elsewhere.
Toshihiro Nagoshi has similarly not revealed what comes next for him personally. For now, the dissolution closes the studio he created after decades at SEGA while leaving its only announced game caught in an uncomfortable gap between being technically alive and having no confirmed team left to finish it.
