The highly anticipated GANG OF DRAGON may never be released.
Nagoshi Studio, a new venture founded by former SEGA veteran Toshiro Nagoshi, has officially been dissolved by NetEase, according to Japanese media reports (cited by Insider Gaming).
The newly-established studio, spearheaded by the creator of Yakuza, made waves when it first announced GANG OF DRAGON at The Game Awards last year, revealing a protagonist portrayed by prolific South Korean actor Ma Dong-seok.
Fans were excited by its Sleeping Dogs-meets-Yakuza concept, which was set to take place in Shinjuku, Tokyo. However, just months after its impressive showcase, the studio began facing difficulties.
Back in March, Nagoshi Studio reportedly needed an additional US$44 million to complete development, but parent company NetEase was unwilling to shoulder the costs and decided to cut funding for the game.
At the time, the proposed solution was for Nagoshi Studio to find another publisher willing to take on the project and pay its way out of the agreement with the Chinese publisher. However, it appears that no such deal materialised. The studio gradually began to fall apart and has now officially been dissolved, putting an end to GANG OF DRAGONS' prospects.
What other studios have shut down in 2026?
The games industry has been shaken by numerous studio closures and layoffs throughout the year. Just two weeks ago, BioWare was shut down by Electronic Arts, simultaneously ending its Mass Effect franchise and cancelling its in-development fifth instalment.
At Xbox, Hellblade developer Ninja Theory closed after failing to secure a buyer, just months after announcing its new game, Senua. Several studio closures within Ubisoft also resulted in the cancellation of a Prince of Persia project, while Sony ended operations at Bluepoint Games eight months ago. These are just some of the major blows the industry has suffered this year.
Nagoshi Studio's demise, along with the cancellation of its in-development GANG OF DRAGON, adds another major name to the growing list of studio closures in 2026.
