Nagoshi Studio Has Closed: Co-Founder Confirms Exit as NetEase Stays Silent

Nagoshi Studio, the Tokyo-based developer founded by Yakuza series creator Toshihiro Nagoshi, appears to have ceased operations, a signal coming from co-founder and director Daisuke Sato, who updated his public profile on June 17 to read 'ex-Nagoshi Studio, Inc.' and removed any studio affiliation. Nagoshi himself appeared in a Famitsu 40th anniversary feature without a studio name beside his, the only creator in that issue listed without a company. No statements have followed from Nagoshi Studio, NetEase, or Nagoshi, and the silence has become telling.

The collapse traces to March 2026, when Bloomberg reported NetEase—Nagoshi Studio's parent and sole funder since its 2022 inception—halted financing in May because finishing Gang of Dragon would cost about ¥7 billion ($44.4 million). The game, announced at The Game Awards in December 2025 and starring Ma Dong-seok, had been in development for roughly four years when funding ended. Since then, Nagoshi Studio's online presence has faded: YouTube deleted, site offline, and Tokyo Ebisu office listed as permanently closed. NetEase reportedly offered a path to continue independently only by bearing the costs of retaining assets and the brand, effectively ending its backing. The broader pattern shows NetEase withdrawing from more than a dozen international studios since 2024, signaling a strategic retreat from aggressive global expansion.