When a game loses funding, things tend to spiral out of control. And many things can happen, such as the game being placed on hold immediately, the studio drastically scaling back development, or, worst case, the game being permanently canceled. But sometimes a studio can recover and secure funding elsewhere to develop the game. Well, in the case of Gang of Dragon, a spiritual successor to the Yakuza franchise by its creator, it isn’t so clear-cut. As Daisuke Sato, the director of the game, has changed his listing on X to “x-Nagoshi Studio,” and following him, seven other employees have also seemingly left the studio on May 31, 2026. With all this said, it’s pure speculation if this is truly the end for Gang of Dragon, but it doesn’t take a genius to see that this perhaps may be the end of the line for the game.
Nagoshi Studios was founded in early 2022 after Toshihiro Nagoshi left Sega and joined NetEase. Daisuke Sato was the director of the Yakuza series with Nagoshi and left with him to co-found the studio. They go on to develop a game, Gang of Dragon, which was revealed at The Game Awards 2025, and it appears to be a spiritual successor to the Like a Dragon/Yakuza series, exciting many. But unfortunately, tragedy struck in March 2026. It’s reported that NetEase has decided to cut funding to the studio, as the studio would still need $44 million to complete the game. And after that, it has been up in the air whether the game would be canceled. As the studio was attempting to find funding outside of NetEase, it seems there was no luck. And now we have Daisuke Sato, changing his listing on X to “x-Nagoshi Studio”, seemingly leaving the studio, putting another nail in the coffin for Gang of Dragon as they have now lost their director, and not soon after, seven other employees have also left, seemingly spelling the end for the studio and game.
With all the information gathered, it’s still speculation whether the game will be fully canceled. There has been conflicting news that the studio has already been shut down, but it’s not 100% confirmed. Both NetEase and Nagoshi Studios have put out a statement on the matter, as they may try to close the door on the situation quietly. This is truly indicative of the current state of the gaming industry, as budgets for games are becoming too bloated, ultimately spelling the end for many studios, as it’s becoming unrealistic for many games to recoup their costs. No matter how you put it, this situation sucks as a new IP won’t be released to the market, and the consumer loses out on competition to the Like a Dragon/Yakuza series.