An updated version, titled Ninja Gaiden 3: Razor's Edge, was released later that year, originally published by Nintendo for the Wii U, and later ported to multiple platforms.

The game is the first in the modern series to be directed by someone other than franchise director Tomonobu Itagaki, with Fumihiko Yasuda and Yosuke Hayashi taking over directorial duties.

Such new features include "Steel on Bone", a new visual cinematic trick which allows players to cut through the body during a slow-motion sequence.

"[4] The plot begins when Ryu is called upon by the Japanese Self-Defense Force to deal with a terrorist group led by the mysterious alchemist, the Regent of the Mask, who personally wanted the Dragon Ninja to come.

Later, Ryu and JSDF member Mizuki McCloud watch as the Regent demands the immediate surrender by the nations of the world in seven days, or face annihilation.

After the JDSF's ship Yunagi intercepts a signal coming from the Rub' al Khali desert, Ryu departs there with Mizuki and meets Ayane, who gives him the Tenshin clan's treasured Jinran-Maru sword at Hayate's request.

Ryu makes his way to a tower in the desert, where he again encounters the Regent of the Mask, who reveals that the affliction of the Grip of Murder used the Dragon Sword as a medium for the curse, then broke its structure down and transmutated it into Ryu's arm, and reveals that without treatment, the curse will rot his arm from the inside out and spread throughout his body, killing him.

First, Ryu revisits Genshin's grave where he placed the Blade of the Archfiend at the end of Ninja Gaiden II.

Joe tells Ryu that the curse is karmic retribution for all the deeds committed by the Dragon Ninja Clan over the generations.

After defeating numerous foes there including an evil version of himself called the Epigonos, the Grip of Murder begins to activate.

Ryu defeats the Regent and is shocked to see that the man is actually Canna's father, Theodore Higgins, who was thought to be dead.

Cliff appears and reveals that he killed his brother when he tried to stop his plan, but for the purpose of him dying at Ryu's hand, he brought him back from the dead, and erased his memories, while controlling him through an AI unit in the mask.

Canna sees this and calls Ryu a murderer, merging with the Egg to become the Goddess, wielding the Dragon Sword as the Black Narwhal sinks into the ocean.

"[6] The development team did not include an ability to dismember limbs, which was a key graphical element of the previous modern games.

A Team Ninja staff member stated that "people do not want to see that anymore" and so they had removed it from the game.

The game's story was written by Masato Kato, who wrote the plotline and designed graphics for the original Ninja Gaiden trilogy for the Nintendo Entertainment System.

[2] Robert, a notable character from Ninja Gaiden II: The Dark Sword of Chaos, makes a cameo as a pilot who helps Ryu jump onto another jet.

[8] A demo of the fighting game Dead or Alive 5, packaged with Ninja Gaiden 3, features Ryu Hayabusa, Ayane, Hayate and Hitomi.

[10] A new statuette of Ryu battling one of the game's bosses was released by Koei Tecmo Wave[11] and included with Ninja Gaiden 3 Collector's Edition available at GameStop and EB Games in the United States, Canada, and the United Kingdom, along with an art book, soundtrack CD, and a premium code for the full Dead or Alive 5 demo.

Official Xbox Magazine gave it an 8 out of 10, praising the combat and graphics, but criticizing the streamlined approach and the ending.

[22] The Official PlayStation Magazine UK gave it a 7 out of 10, saying "it's largely fun even if it doesn’t quite deliver on its grand objectives.

"[20] The updated and expanded version titled Ninja Gaiden 3: Razor's Edge was released for the Wii U in 2012, and for the PlayStation 3 and Xbox 360 in 2013.

This is the version Koei Tecmo has chosen to include in the Ninja Gaiden: Master Collection, released in June 2021 for the Microsoft Windows, Nintendo Switch, PlayStation 4, and Xbox One.