Yakuza Creator’s Studio Officially Shuts Down After Losing Backing

Nagoshi Studio, the developer founded by Yakuza creator Toshihiro Nagoshi, has closed after NetEase withdrew its funding. The studio had been developing Gang of Dragon, a crime drama in the vein of Yakuza starring Ma Dong-seok.

Japan’s official gazette, Kanpo, confirmed that the company was dissolved on October 31. Bloomberg reported in March that NetEase had chosen to stop funding the studio after learning that completing Gang of Dragon would require another 7 billion yen, or about $44 million. The studio reportedly could not find another backer for the project.

Rising Costs Put Gang of Dragon Beyond NetEase’s Budget

Gang of Dragon was unveiled at The Game Awards in 2025 with a cinematic trailer portraying life in Tokyo’s Kabukicho district. It suggested a grittier, more realistic and violent take on organized crime than the Yakuza series.

NetEase has been scaling back its gaming portfolio and overseas investments since 2024, leading to the closure of several studios. Among them was a new MMO studio founded by World of Warcraft designer Greg Street.

Nagoshi established the studio in 2022 alongside key members of Ryu Ga Gotoku Studio, the Sega team behind the Yakuza and Like a Dragon games. During more than three decades at Sega, he worked on titles including Daytona USA, Shenmue and Super Monkey Ball before creating Yakuza.

Source: Polygon