Nagoshi Studio dissolved as NetEase reportedly cuts Gang of Dragon funding

Nagoshi Studio, founded in 2021 by Toshihiro Nagoshi, has been dissolved. Game Developer cites a report of company dissolutions in Kanpo, the official government gazette of Japan. The outlet also says NetEase reportedly cut funding for the studio's game.

The game is Gang of Dragon, a spiritual successor to the Like a Dragon/Yakuza series that Nagoshi created at Sega. The studio unveiled it last December at The Game Awards in Los Angeles. Nagoshi left Sega in 2021 as chief creative officer and head of Ryu Ga Gotoku Studio, then founded Nagoshi Studio under NetEase the same year.

In March, Bloomberg reported that NetEase pulled back funding after the studio required an additional ¥7 billion ($44.5 million) to finish the game. Game Developer notes this coincided with NetEase looking to pull back from gaming.

Game Developer says NetEase has not officially canceled Gang of Dragon, but it is unclear if NetEase has any appetite to take the project over the finish line. Nagoshi has not issued a public statement since the reveal. This past summer, the Nagoshi Studio YouTube channel was deleted, then restored with all videos set to private, including the reveal trailer.

Game Developer places the studio among a longer list of NetEase-owned studios that have had layoffs or shut down. It also cites Goichi Suda's Grasshopper Manufacture and Anchor Point Studios as studios that have recently split from NetEase.