The PlayStation 5 title Gang of Dragon, created by Yakuza series architect Toshiro Nagoshi, has been officially cancelled alongside the closure of Nagoshi Studio. The studio and game ceased operations as of 31 October 2026, according to a notice published in Japan’s government gazette Kanpo, as reported by Gematsu.
Gang of Dragon was a project planned under a new independent development team founded by Nagoshi with backing from Chinese publisher NetEase. Although first revealed only a few months before its cancellation during The Game Awards 2026, the project’s funding had been in jeopardy since reports emerged early in 2026 that NetEase had begun pulling out its financial support.
Nagoshi Studio was established to develop this Yakuza-inspired title, aiming to build on the reputation and creative direction of Toshiro Nagoshi, known for his work on the Yakuza franchise. However, the recent official dissolution confirms that the studio will no longer operate, effectively terminating both the developer and the Gang of Dragon project.
This announcement is significant for PlayStation players and fans of Nagoshi’s work, as the PS5 game had sparked interest shortly after its reveal. The cancellation removes what was anticipated to be a notable new addition to the console’s catalogue from a renowned Japanese developer.
NetEase’s retreat from the project highlights challenges in sustaining the studio’s operation and investment despite the involvement of a veteran creator. No further information has been released regarding the future plans of the team members or Nagoshi himself following the closure.
The closure of Nagoshi Studio and cancellation of Gang of Dragon mark a decisive end to this PS5 game’s development, with no current indications of revival or continuation on other platforms.
