After NetEase stopped funding the game, the studio found itself in a difficult position: it was reported that about $45 million was needed to complete the project. Then, the Nagoshi Studios YouTube channel and the Gang of Dragon trailer disappeared, and the official studio website stopped working. At the same time, the company itself has not reported anything about the situation for about 10 months.
In a new episode of the VGC Podcast, journalist Andy Robinson stated:
Nagoshi Studio wasn't announced, but it's no longer there. I heard that Toshihiro Nagoshi even applied to other studios recently, so I think it's fair to say it's no longer there, and that's very disappointing.
There is no official confirmation of the studio's closure yet. However, if the information about Nagoshi looking for a new job is true, then Nagoshi Studios and Gang of Dragon were likely shut down.