The bastards. They killed the Dreamcast and now Shenmue apparently. Shortly after Shenmue II hit the DC, there were rumblings that a sequel was in the works. We're still waiting. Then, back in early 2006, the game's producer and director Yu Suzuki stated at event China Joy 2006 that Shenmue Online was *still* in development. (The game was originally announced back in 2004!) This year's China Joy turned up no Shenmue Online, and according to Adam Doree from game site Kikizo site, fat chance on seeing Shenmue III:
As for Shenmue, I would have to say at this stage, it is worth forgetting about... Suzuki's status is, once again, up in the air, which counts Shenmue III totally out of the picture right now. This is confirmed, it seems.
SEGA has yet to provide an official statement on the game. Shame to see the rot set in. Really.
No More Shenmue [VGB]