Last December, Nagoshi Studio unveiled the trailer for Gang of Dragon, an intense action-adventure game set to be Toshihiro Nagoshi’s first project under the new studio. Despite a promising start, development stalled, leaving Nagoshi Studio in need of an additional $44.4 million to finish the game.
According to Bloomberg, this financial gap prompted NetEase, the studio’s parent company, to halt funding in May 2026, potentially pushing Nagoshi Studio to the brink of closure. Observations of the studio’s social media accounts revealed that updates stopped around February, a month prior to NetEase’s funding cessation announcement.
In May, fans noted that Nagoshi Studio’s official website became unavailable, and its YouTube channel was removed, further fueling speculation about the studio’s future. While NetEase offered to help Nagoshi Studio become independent, it remains unclear if the developer is in talks with another investor or if the project is still on hold.
A recent development from Weekly Famitsu, a Japanese video-game magazine, has added another layer to Nagoshi Studio’s uncertain status. This week’s issue marks the magazine’s 40th anniversary, featuring 52 interviews with industry veterans. Among them is Toshihiro Nagoshi, but notably, his company affiliation is absent from his profile introduction. In contrast, all other developers have their studios clearly listed, and freelancers are identified as such. Nagoshi is simply referred to as a “game creator,” offering no insight into his current position.
Though an official update on Gang of Dragon is still pending, the omission of Nagoshi Studio from the director’s bio has been seen as a negative sign by Japanese commenters. Alternatively, it’s possible that Nagoshi and his team are preoccupied with ongoing negotiations or legal matters, preventing them from providing further details.