Nagoshi Studio, the developer behind Gang of Dragon, has closed down just months after NetEase halted its financial backing.

Nagoshi Studio, the developer behind Gang of Dragon, has shut down following the withdrawal of financial support from NetEase earlier this year.

Reports from Gematsu mention that Japan's Kanpo published a notice on October 31, confirming the studio's closure due to a resolution passed by its shareholders.

The studio was established by Toshihiro Nagoshi, known for the Yakuza series, in collaboration with NetEase Games in 2022. They unveiled a teaser for Gang of Dragon during The Game Awards in December 2025.

In March 2026, it was announced by NetEase that funding for Nagoshi Studio would cease, though no specifics were provided regarding the rationale or terms.

It was reported that completing Gang of Dragon would require an additional ¥7 billion ($44.4 million), an amount beyond the studio's financial reach after failed attempts to find new backers.

The development team was informed by NetEase that continuing operations independently would mean assuming responsibility for any associated costs, including those related to intellectual assets or brand maintenance.

Toshihiro Nagoshi, who started with Sega in 1989 in its AM2 division, became Sega's chief creative officer until his resignation in 2021, after which he served as creative director and general director at Ryu Ga Gotoku Studio.

Notably, Nagoshi Studio is not the only developer from Japan to separate from NetEase.

In a similar move, Grasshopper Manufacture, known for the game Romeo is a Dead Man, regained independence in September.

Goichi 'Suda51' Suda, the CEO of Grasshopper Manufacture, noted the desire to expand its creative portfolio as the motivation for their independent status, achieved through an amicable agreement with NetEase Games. They expressed optimism about future collaborations.