The Tamashiro Family was established by patriarch Tetsuo Tamashiro, taking control over the Hatsumachi area in the northern part of Downtown Ryukyu. This pitted them against Shigeru Nakahara's Ryudo Family, who control the southern part of the district, around Ryukyu Boulevard.
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The Tamashiro Family are dealt a humiliating blow by Kiryu after he rescues Saki from them in their office. They take revenge by demolishing Morning Glory Orphanage, and kidnapping the Ryudo Family's Shigeru Nakahara. This ultimately leads to the death of Tamashiro himself and the ensuing disbandment of the family.
The fact that the Tamashiro Family have ceased to exist is established by the fact that the office, which appears in a part of Yakuza 4's story, is now abandoned.