Nagoshi Studio, the developer founded by Yakuza and Like a Dragon series creator Toshihiro Nagoshi, appears to have reached the end of the road after months of uncertainty surrounding its debut project, Gang of Dragon. According to recent reports, the studio’s Google business listing in Tokyo’s Ebisu district now shows the company as “Permanently closed,” adding another worrying sign to an already troubled situation.
There has still been no official statement from Nagoshi Studio, Toshihiro Nagoshi, or NetEase confirming a full shutdown. However, the latest claim follows a chain of visible problems, including NetEase ending funding, the studio’s official website going offline, and the removal or disappearance of YouTube content tied to Gang of Dragon. Taken together, the outlook for the studio and its long-awaited debut game now looks extremely grim.
Nagoshi Studio’s Closure Claim Follows Months of Warning Signs
The latest concern around Nagoshi Studio comes from a social media report claiming that the studio’s Google business listing now marks the company as permanently closed. While that alone is not the same as a formal closure announcement, it comes after several public signs that the studio’s operations were in serious trouble.
In May, Nagoshi Studio’s official website had disappeared, with the site no longer loading despite the Wayback Machine showing it had been active as recently as April 24. Also, the studio’s website appeared to have gone offline, noting that there had been no statement from the studio explaining the outage.
The disappearance of the website was especially notable because it followed an earlier incident where Nagoshi Studio’s YouTube channel and related Gang of Dragon videos vanished before later returning. Back in April, the dedicated YouTube channel of Gang of Dragon and its videos were removed and then reinstated without explanation. The channel still exists, but has no content available.
NetEase Pulled Funding From Gang of Dragon
The biggest blow to Nagoshi Studio came earlier this year when NetEase decided to stop funding the company. Bloomberg reported in March that NetEase Games would cut off funding to the Toshihiro Nagoshi-led studio in May as part of a broader reduction in game development activity.
According to that report, the decision came after NetEase found that Gang of Dragon would require at least another ¥7 billion, or around $44.4 million, to complete. Nagoshi was reportedly looking for new sponsors, but no replacement funding had been secured at the time.
Gang of Dragon Was Supposed to Be Nagoshi’s Big Post-Sega Comeback
Nagoshi Studio was established under NetEase in 2021 after Toshihiro Nagoshi left Sega and Ryu Ga Gotoku Studio. The studio officially announced Gang of Dragon at The Game Awards 2025, positioning it as Nagoshi’s first major project after decades of work on franchises like Yakuza and Like a Dragon.
The reveal immediately drew comparisons to Nagoshi’s past work. Gang of Dragon appeared to be a crime-focused action game set in Tokyo, with a tone and style that naturally appealed to longtime Yakuza fans. The game was described as a “very Yakuza-looking experience,” while Twisted Voxel reported that it was described as a cinematic action-adventure title set in Tokyo’s Kabukicho district.
Gang of Dragon had only been publicly revealed a few months before reports of NetEase pulling funding began to surface.
The Studio Has Still Not Made an Official Statement
Despite the growing signs, there is still one important caveat. Nagoshi Studio has not officially announced that it is closing, and there has been no public confirmation from Toshihiro Nagoshi or NetEase about the final status of Gang of Dragon.
The studio’s last social media communication was on February 17, when it thanked fans for the support shown toward the Game Awards trailer. Twisted Voxel also reported that neither Nagoshi Studio nor NetEase had publicly commented on the website outage, missing YouTube material, or the status of Gang of Dragon.
As of writing, that means the safest way to describe the situation is that Nagoshi Studio appears to have closed or is at least no longer operating normally. The reported Google listing, the offline website, the missing promotional content, and the funding cutoff all point in the same direction, but the absence of an official statement leaves some room for uncertainty.
Future Looks Bleak for Gang of Dragon
If Nagoshi Studio has indeed shut down, Gang of Dragon’s future is likely in serious doubt. The game was already facing an uphill battle after NetEase ended funding, especially with reports claiming it needed more than $44 million in additional money to finish development.
Nagoshi Studio was discussing with NetEase how to handle already-developed materials and that the studio could potentially go independent, but only if it could pay its way out and keep the assets and brand. Without a new publisher or investor, that path always looked difficult.
The current situation makes a smooth rescue even harder to imagine. A project can sometimes survive a publisher shake-up, but losing funding, losing public-facing channels, and reportedly having the studio listed as permanently closed is a much bigger problem.
A Sad Turn for One of Gaming’s Most Recognizable Creators
Toshihiro Nagoshi helped shape one of Sega’s most beloved franchises, and Gang of Dragon was supposed to show what he could build outside that system.
Instead, the project may become another example of how brutal modern AAA development has become. Even a famous creator, a recognizable style, and a major publisher backing were not enough to guarantee survival once costs ballooned and funding priorities changed.
Until Nagoshi Studio or NetEase makes an official statement, there is still some uncertainty around the final status of the company and Gang of Dragon. But based on everything that has happened over the past few months, from NetEase pulling funding to the studio’s website disappearing and now the reported permanent closure listing, the future of Nagoshi Studio looks darker than ever.
