What Happened to Nagoshi Studio and Why Are Developers Leaving

0

Nagoshi Studio faces mass departures after NetEase cuts funding. Learn what happened, who left, and what it means for Gang of Dragon.

A cloud of uncertainty has surrounded Nagoshi Studio since March, and now a new investigation has confirmed the worst. According to reporting by Game*Spark, at least seven employees, including senior leaders, will leave the company by the end of May 2026. The departures follow NetEase’s decision to cut funding for the studio’s debut title Gang of Dragon, leaving the team without a project, without support, and without a clear future.

Table of Contents

What Is Happening at Nagoshi Studio

The situation began in March 2026, when NetEase informed staff that it would withdraw financial support for the studio. Without funding, Nagoshi Studio effectively lost its only active project and its operational stability.

Key signs of shutdown include:

  • The official website going offline
  • The YouTube channel being deleted
  • The Tokyo office listed as permanently closed on Google
  • Senior staff quietly updating their profiles to reflect new employment

The silence from both NetEase and Nagoshi Studio has only intensified concerns.

Who Is Leaving Nagoshi Studio

GameSpark’s investigation identified at least *seven confirmed departures, including high ranking staff.

Confirmed exits include:

  • Kazuki Hosokawa, head of the design department
  • Naoki Someya, senior environment designer, now at Lightspeed Japan
  • Tomoharu Hosaka, technical artist, now at Capcom
  • Hiroya Wakui, now at MIXI
  • Saizo Nagai, main character artist, also at MIXI
  • Shuichi Takahashi, affiliation not listed
  • Toshihiro Ando, affiliation not listed

Two of the studio’s most recognizable names also signaled their departure:

  • Daisuke Sato, co founder and game director, updated his profile to ex Nagoshi Studio
  • Toshihiro Nagoshi, the studio’s president, appeared in Famitsu’s 40th anniversary issue with no studio affiliation listed

What Led to the Collapse of Gang of Dragon

The turning point came on March 6, 2026, when NetEase informed staff that Gang of Dragon would require 7 billion yen in additional funding, roughly 44 million USD, to complete.

NetEase attempted to secure outside investment but failed. Without funding:

  • Development halted
  • Marketing materials were removed
  • The project was effectively abandoned

The studio was left without a product and without financial backing.

Who Founded Nagoshi Studio

Nagoshi Studio was founded in January 2022 as a wholly owned subsidiary of NetEase Games.

Founders included:

  • Toshihiro Nagoshi, creator of the Yakuza series and former Sega creative director
  • Daisuke Sato, longtime Yakuza producer and director

The studio’s mission was to create high quality, globally released console games with cinematic storytelling.

What Was Gang of Dragon

Gang of Dragon was the studio’s first and only announced project, revealed at The Game Awards 2025.

Key details included:

  • Set in the back alleys of Kabukicho, Shinjuku
  • Starring Ma Dong seok, known for Train to Busan, The Outlaws, and Eternals
  • Positioned as a mature, cinematic action drama

The project was ambitious, expensive, and ultimately unsustainable under NetEase’s revised strategy.

How Did the Public Learn About the Studio’s Decline

The collapse became visible through scattered clues:

  • Staff quietly updating LinkedIn
  • Sato’s profile change on X
  • Nagoshi appearing in Famitsu without studio affiliation
  • Deleted promotional materials
  • The office closure listing

Game*Spark’s investigation connected these pieces into a clear picture of a studio in disintegration.

How Does This Fit Into NetEase’s Recent Strategy

Nagoshi Studio is not an isolated case. NetEase has recently shut down or defunded more than a dozen international studios, reversing its earlier global expansion.

Studios affected include:

  • Jar of Sparks
  • Worlds Untold
  • Ouka Studios, previously developing Visions of Mana
  • Several unannounced overseas teams

NetEase has shifted toward high volume, lower risk domestic titles, leaving prestige console projects behind.

Tags:
Post a Comment (0)
Previous Post Next Post