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Shenmue

is an open-world action-adventure video game developed by Sega AM2, produced and directed by Yu Suzuki, and published by Sega for the Dreamcast in December 1999 in Japan and late 2000 in other territories. It is the first game in the Shenmue series, a "revenge epic in the tradition of Chinese cinema", which Suzuki plans to span at least four games.

Shenmue consists of open-world 3D environments interspersed with brawler battles and quick time events. It features a level of detail considered unprecedented at the time, including a day-and-night system, variable weather effects, non-player characters with daily schedules, and various minigames. The story follows the teenage martial artist Ryo Hazuki as he sets out in revenge for the murder of his father in 1980s Yokosuka, Japan.

After developing several successful Sega arcade games, including Hang-On (1985), Out Run (1986) and Virtua Fighter (1993), Suzuki wanted to create a longer game experience. AM2 began work on an RPG for the Sega Saturn set in the Virtua Fighter world. In 1997, development moved to the Dreamcast, the game was named Shenmue and the Virtua Fighter connection was dropped. It became the most expensive video game ever developed at the time, with an estimated production and marketing cost of $47 to $70 million USD, though some of the development also covered Shenmue II (2001).

Shenmue received mostly positive reviews; critics praised its graphics, soundtrack, realism and ambition, but criticized its slow pace and voice acting. Though its unusual focus on mundane details divided players, it attracted a cult following, appearing in several " greatest video games of all time" lists, and is credited for pioneering game systems including quick time events and open-world environments. Despite sales of 1.2 million, Shenmue did not recoup its development cost and is considered a commercial failure. After the release of Shenmue II, further games in the series entered development hell. In July 2015, Suzuki and his development company Ys Net began developing Shenmue III for PlayStation 4 and PC after a successful crowdfunding campaign, having licensed the rights from Sega.