Toshihiro Nagoshi’s independent studio, Nagoshi Studio, has reportedly permanently closed following the collapse of its debut project, according to circulating reports and changes to the studio’s online presence.

The studio, founded in 2021 after Nagoshi’s departure from SEGA, was backed by NetEase and was expected to develop a brand-new action franchise separate from the long-running Yakuza / Like a Dragon series.

Studio Reportedly Marked as “Permanently Closed”

Reports began circulating after fans noticed Nagoshi Studio’s Google business listing in Tokyo’s Ebisu district had been updated to display a “Permanently closed” notice.

At the same time, the studio’s official website reportedly went offline, while its YouTube channel and previously released promotional materials also disappeared. As of now, neither Nagoshi nor the company has issued an official public statement regarding the reported closure.

The sudden disappearance of the studio’s online presence has fueled speculation that the shutdown may have happened internally before any formal announcement was prepared.

NetEase Allegedly Ended Funding

According to reports shared online, NetEase decided to discontinue funding for the studio after determining that its debut project, reportedly titled Gang of Dragon, would require an additional ¥7 billion (roughly RM208 million). in development funding.

The project was allegedly unable to secure a new publishing or investment partner following the funding concerns, ultimately leading to the studio’s closure.

While the exact scale and scope of Gang of Dragon remain unclear, the title had reportedly been positioned as a large-scale action game from the creator behind the Like a Dragon franchise.

A Short-Lived Studio With Big Expectations

Nagoshi Studio attracted major attention when it was first announced due to Toshihiro Nagoshi’s legacy within the Japanese games industry.

As the longtime producer and creator behind the Yakuza and Like a Dragon franchise, Nagoshi helped establish one of SEGA’s most recognizable modern series, known for its mix of crime drama, open-ended city exploration, and eccentric side content.

His departure from SEGA in 2021 and subsequent partnership with NetEase signaled what many believed would be a major push into premium AAA game development outside traditional Japanese publishing structures.

Fans React to the Reported Closure

Online reactions to the reported shutdown have been mixed, with many fans expressing disappointment over never getting to see the studio’s first project.

Some users questioned the reported budget requirements, especially after comparisons surfaced claiming Yakuza 0 was developed with a significantly smaller budget. Others criticized the growing instability surrounding large-scale AAA development, particularly for newly established studios without an existing release history.

There has also been concern over the apparent disappearance of the studio’s trailers, website, and archived materials, with some fans calling the situation another example of why preserving digital gaming history has become increasingly important.

No Official Confirmation Yet

Despite the growing reports, neither Nagoshi Studio nor NetEase has officially confirmed the closure at the time of writing.

However, with the studio’s online infrastructure disappearing and no active communication channels remaining, many fans believe the company may have quietly ceased operations behind the scenes.

If confirmed, the closure would mark a sudden end to one of the most high-profile Japanese studio launches in recent years, and another reminder of the growing financial pressures surrounding modern AAA game development.