According to Bloomberg, an additional 7 billion yen, approximately $44.4 million was needed to complete development of Gang of Dragon. After learning of this amount, NetEase decided to stop financing the studio starting in May. A company representative also confirmed to Bloomberg that financial support would be discontinued.
The decision came as NetEase was reducing its investments in the gaming sector. The company was also reconsidering its support for other studios. The additional budget required for Gang of Dragon made it difficult to continue the project under such circumstances.
According to reports, Nagoshi was seeking a new financial partner but had been unable to secure one when the initial reports were published. Moreover, finding another investor would not have solved all the problems. The studio would have had to make an appropriate payment to NetEase to continue working on the game independently and retain its brand and already completed materials. This condition would have increased the project’s financial burden.
In the months following the financing decision, other concerning signs regarding the studio’s operations also emerged. Following the removal of Gang of Dragon’s promotional videos from YouTube, Nagoshi Studio’s official website became inaccessible.
In June, the studio’s Tokyo office was marked as permanently closed on Google Maps. Co-founder Daisuke Sato also described himself as a former Nagoshi Studio employee on his social media profile. Although these developments strengthen the possibility that the studio has ceased operations, reports have emphasized that there has been no official statement regarding its closure.
What kind of game was Gang of Dragon going to be?
Presented at The Game Awards 2025, Gang of Dragon was being developed as a third-person action-adventure game. The events take place in Tokyo’s Kabukicho district, while the story centers on Shin Ji-seong, a high-ranking member of a Korean criminal organization.
The protagonist was played by South Korean actor Ma Dong-seok. The project was planned to feature hand-to-hand combat, firearms, and action sequences involving vehicles. Its crime-focused atmosphere was reminiscent of Nagoshi’s work on the Yakuza series. The game’s release date had not been announced.
The loss of financial support and signs concerning the studio’s operations have cast serious doubt on Gang of Dragon’s future. However, they do not confirm that the game has been definitively canceled. It is also still unknown whether Nagoshi will return to the project with another partner.
