Nagoshi Studio shutters months after NetEase cut funding
Nagoshi Studio, the developer behind the upcoming Gang of Dragon, has officially ceased operations. The studio was dissolved by a shareholders' resolution on October 31, 2026, following the withdrawal of funding by NetEase earlier this year.
The closure was confirmed via a notice published in the Japanese government gazette, Kanpo, which stated that the studio was officially dissolved by a shareholders' resolution. This follows a period of uncertainty that began in March 2026, when NetEase confirmed it was cutting funding to the studio, though the company did not disclose the specific reasons or the terms of its exit.
The financial gap for Nagoshi Studio's flagship project, Gang of Dragon, proved insurmountable. Reports indicated that at least ¥7 billion ($44.4 million) would have been required to complete the game. While the studio reportedly attempted to secure new sponsors, these efforts were unsuccessful. NetEase had previously informed the developer that while they were free to continue independently, they would have to bear all costs if they wished to retain the brand and assets.
Founded in 2022 by Yakuza series creator Toshihiro Nagoshi under the NetEase Games umbrella, the studio had recently gained momentum. In December 2025, Nagoshi Studio debuted a teaser trailer for its new IP, Gang of Dragon, at The Game Awards, marking a significant milestone for the developer's new venture.
Nagoshi Studio is not the only Japanese entity to part ways with the Chinese publisher recently. In September, Grasshopper Manufacture also split from NetEase to regain its independence. CEO Goichi 'Suda51' Suda noted that the move was intended to allow the studio to deliver titles in a wider variety of styles, emphasizing that the transition was conducted through thorough discussions and cooperation with NetEase.
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