Nagoshi Studio, the company established by NetEase Games in January 2022, has shut down. The studio announced its first game, Gang of Dragon, during The Game Awards in December 2025.
In March 2026, Bloomberg reported that a NetEase spokesperson had confirmed the company would stop financing the studio. According to the report, NetEase made the decision after determining that Gang of Dragon required an additional 7 billion yen, approximately US$44 million, to be completed.
The studio’s producer, Daisuke Satō, had already described himself as a former Nagoshi Studio employee on his social media accounts in June.
Toshihiro Nagoshi left Sega in October 2021 after stepping down as the company’s chief creative officer in April of that year and continuing briefly as creative director. He had worked at Sega since 1989.
The closure follows the reported shutdown of another NetEase studio in Tokyo. Bloomberg reported in September 2024 that NetEase had laid off most of the staff at Ouka Studios, the developer of Visions of Mana, and planned to close its Shibuya offices. The studio closed later that year. Ryosuke Yoshida, director of Visions of Mana, joined Square Enix in December 2024.
Sources: Anime News Network.