Will there ever be a Shenmue III? Maybe. But the long hoped for conclusion to the Shenmue saga is moot now, thanks to Sega legend Yu Suzuki revealing to Mega 64 how the story arc would have ended. Spoiler alert!
Suzuki spilled the beans on the remaining chapters of the Shenmue saga at GDC last week, revealing that hoverboard swords and Ryo Hazuki's heretofore unknown machine gun arm and rocket-powered flatulence would have played a big part in the third Shenmue game. Ryo would have punched trees, forklifted across America and met Italian mobsters in an adventure teased as "bad-ass," "dope" and "tight." This is some mind-blowing stuff, the kind of bold innovation Sega clearly wasn't ready for, explaining the company's hesitance in funding Shenmue III.
I agree with Suzuki. It sounds so tight.