· News · 6 views
Nagoshi Studio Reportedly Dissolved After NetEase Pulls Gang of Dragon Funding
Toshihiro Nagoshi's studio has reportedly been dissolved, according to a Japanese government filing, after NetEase stopped funding its debut game, Gang of Dragon.
Nagoshi Studio, the company Toshihiro Nagoshi set up after leaving Sega, has reportedly been dissolved. Game Developer reports that a dissolution notice in Japan's official government gazette, the Kanpo, ends a studio whose only project, Gang of Dragon, was left without funding after its backer stepped away.
What happened
Game Developer's Imran Khan reported the closure on November 2, 2026, based on the Kanpo filing. The collapse traces back to March, when Bloomberg reported that NetEase would stop funding Gang of Dragon. According to Video Games Chronicle, the project reportedly needed an additional ¥7 billion (about $44 million) to reach completion, and NetEase decided to cut off support after learning of that gap. Nagoshi was reportedly seeking other funding without success.
The warning signs piled up through the year. Automaton reported that several development members had left the studio, with some confirmed to have joined other companies such as Capcom's Lightspeed Japan. In May, reports circulated that the studio had shut down and its website had gone offline. Game Developer adds that the studio's YouTube channel was deleted over the summer and later restored with all videos set to private, including the reveal trailer from The Game Awards.
Key details
- Studio: Nagoshi Studio, founded in 2021 under NetEase
- Founder: Toshihiro Nagoshi, formerly Sega's chief creative officer and head of Ryu Ga Gotoku Studio
- Project: Gang of Dragon, an action game starring Ma Dong-seok, revealed at The Game Awards 2025
- Funding gap: Reportedly ¥7 billion (about $44 million) needed to finish the game
- Closure report: Based on a Kanpo dissolution filing, reported November 2, 2026
- Missing or unconfirmed: Whether NetEase has formally cancelled the game, and whether it will be completed
What is still unconfirmed
Neither NetEase nor Nagoshi has made a public statement on the closure, and Nagoshi has not spoken publicly since the December reveal. The dissolution is based on the government filing and on reporting rather than an official studio announcement. Whether Gang of Dragon will continue, or be moved to another team, is unknown.
What it means for developers
- Funding can disappear mid-production. A famous founder and a Game Awards reveal were not enough to protect this project once its backer changed strategy. Read your publishing contract for cancellation clauses and payment milestones.
- Publisher retreats hit hard. VGC ties this closure to NetEase scaling back its international development, a pattern that also includes several studio closures. Line up a second funding source before you need one.
- Scope to the real finish line. The gap reported here was measured in hundreds of millions of yen, not a rounding error. Estimate the cost of completion before committing to a public reveal.
- Keep your own archive. Trailers, build snapshots and design documents can vanish with a studio's web presence. Store copies somewhere you control.
- Communicate when things change. Silence after a reveal invites speculation. A short, honest status update does more for players and partners than waiting for a press cycle.
Sources
Cover image: Gang of Dragon, official screenshot © Nagoshi Studio.
