Yakuza creator’s new studio has reportedly been shut down by NetEase

After spending 30 years at SEGA, Yakuza creator Toshihiro Nagoshi announced back in 2021 that he had parted ways with the publisher, later joining the gaming giant NetEase to form a brand new studio. While things seemed to be going well initially, NetEase has since withdrawn somewhat from its plethora of acquisitions, with one insider claiming that ‘Nagoshi Studio’ is now essentially “gone.”

During the latest episode of the VGC podcast, known insider Andy Robinson commented on the recent announcement that Suda51’s studio ‘Grasshopper Manufacture’ had officially regained its independence from NetEase following its acquisition back in 2021.

According to Robinson, another acquisition – Nagoshi Studio – hasn’t been as lucky, with the insider claiming that “Nagoshi Studio, it’s not been announced, but that’s gone”. Offering further context, Robinson added that Yakuza creator and studio head Toshihiro Nagoshi has reportedly been “applying at other studios recently” – all-but-confirming the studio’s closure.

As mentioned, Toshihiro Nagoshi left SEGA back in 2021, going on to create a new studio under NetEase. The fruits of their labour would be officially shown off during the 2025 Game Awards, announcing Yakuza’s spiritual successor ‘Gang of Dragon’.

Unfortunately, the project then ran into some issues, with reports claiming back in March that NetEase had stopped funding the game owing to the project requiring an additional $44 million on top of what was already spent.

In the months following, we saw further evidence of trouble, with the official website for Nagoshi studio (and its YouTube channel) being closed, alongside various developers – including Nagoshi himself – no longer acknowledging the studio in various interviews.

Combine all of this with the latest report and it’s safe to assume that Nagoshi's Studio is indeed dead. What this means for Gang of Dragon however remains to be seen. All in all, it's a shame to see yet another victim of corporate consolidation leading to less stability and years of wasted development. Hopefully Nagoshi and co. are able to rise from the ashes.

KitGuru says: Are you disappointed by the announcement? What did you think of Gang of Dragon? What would you like to see Nagoshi try next? Let us know down below.

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