Shenmue III[a] is a 2019 action-adventure game developed by Ys Net and originally published by Deep Silver for the PlayStation 4 and Windows.

Like the previous Shenmue games, it consists of open-world environments interspersed with brawler battles and quick time events, with a day-and-night system, variable weather effects, non-player characters with daily schedules, and various minigames.

Players control the teenage martial artist Ryo Hazuki, who continues his search for his father's killer in the mountains of 1980s Guilin, China.

Like the previous Shenmue games, the player controls the teenage martial artist Ryo Hazuki, who is searching for his father's killer.

Most of the game is spent exploring the open world in Guilin, China, searching for clues, examining objects and talking to non-player characters for information.

[1] The game features a 3D fighting system similar to the Virtua Fighter series; Ryo can practice moves to increase their power.

[2] Ryo can earn money through minigames such as gambling, fishing, woodchopping, and forklift driving, and by selling foraged herbs.

[3] Shenmue III introduces a stamina system, whereby Ryo's hit points (HP) gradually decline as the player explores.

[4] In 1987, the teenage martial artist Ryo Hazuki has journeyed from Yokosuka, Japan, to the mountains of Guilin, China, in search of his father's killer, Lan Di.

He convinces Sun, a local martial arts master, to teach him a powerful Bajiquan move, and uses it to defeat Yanlang.

Ryo fends off an attack from Lan Di's henchman, Chai, who reveals that Yuan and Xu have been taken to the city of Niaowu.

Ryo encounters his Hong Kong ally, Wuying Ren, who has traveled to Niaowu in pursuit of the treasure connected to the mirrors.

Ryo meets a cormorant fisherman, Grandmaster Bei, who teaches him a similar Bajiquan move to defeat the Red Snakes.

Ryo gives her the real phoenix mirror to spare Shenhua's life, and Niao Sun tells them Lan Di is up ahead.

Niao Sun has her men distract Lan Di in the castle and consolidate her power, and Ryo and Ren escape.

On board, Yuan reveals that the mirrors were initially locked away in a cliff temple; Zhao Sunming retrieved them to keep them from "falling into the wrong hands".

[6] With a level of detail considered unprecedented,[7] the original Shenmue was the most expensive video game ever developed at the time, reported to have cost between US$47 and 70 million, including marketing.

[15] That year, Sega announced Shenmue City, a social game for the Japanese services Mobagetown (for cell phones) and Mobage (PC).

[30] On June 14, 2015, the day before the Los Angeles E3 industry event, Suzuki tweeted "E3" with a photo of a forklift, a reference to a minigame in the original Shenmue.

[31] During Sony's E3 press conference the next day, Suzuki announced a Kickstarter crowdfunding campaign to develop Shenmue III for PlayStation 4 and Windows with a tentative release date of December 2017.

[32] The surprise announcement drew publicity,[17] winning the "Best Debut" award from GameTrailers[33] and generating a surge in sales of pre-owned Dreamcast consoles.

[40] Crowdfunding ended on July 17 having raised $6.3 million from over 69,000 backers, becoming the highest-funded video game in Kickstarter history at the time.

[17] Other staff had credits for games such as The Legend of Zelda: Breath of the Wild and series such as Streets of Rage and Virtua Fighter.

[49][50] In November 2015, Suzuki visited China to promote the project and research the locations, traditional clothes and martial arts of Guilin.

In a presentation at China's Chuapp conference that month, he said that Shenmue III's story and "composition" were complete and that "baseline research" with Unreal Engine 4 had begun.

[53] In February 2016, Suzuki demonstrated the weather effects, lighting, and music at the Monaco Anime Game International Conference.

[58] In December 2017, Ys Net announced that the Indian studio Lakshya Digital would provide additional character models.

[70] In January 2020, Ys Net released the first Shenmue III downloadable content (DLC) expansion, "Battle Rally".

[91] According to GamesIndustry.biz, "Ys Net hasn't rebooted or reimagined its franchise; rather, it has made a game as if (for the most part) the intervening years never happened at all.

[97][98] Lars Wingefors, the CEO of Deep Silver's parent company, Embracer Group, said that Shenmue III had been "fine" financially and that it was a "core niche product".