After Shenmue 3 was supposed to revive the series, Shenmue appears to have returned to limbo for the time being. While an anime adaptation consisting of 13 episodes was announced last year, an actual new game isn't entirely on the cards yet. Rather than wait for Yu Suzuki to get round to it, a group of dedicated fans have taken it upon themselves not to make a new game but to give the first two a major update.
Dubbed the Shenmue Dragon & Phoenix Collection, it is essentially an engine replacement mod for the PC versions of Shenmue 1 & 2, which were re-released back in 2018. By replacing the original engine with Unreal Engine 4, the aim is to modernize the games so they're more in line with Shenmue 3, while still maintaining the original aesthetic and mechanics.
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While it already sounds like an impressive undertaking, the team is going one step further by essentially making two different versions. The Dragon version is to serve as a 1:1 port of the original games, just in Unreal 4 with very little new features. The Phoenix version, however, is described as being a full reimagining. Exact details about how it will work are vague but one example given is that it could replace the stamina system with the one seen in Shenmue 3.
The mod is likely a long way away from releasing, with the announcement not even giving anything resembling a release window, but they have shared a Discord for anyone who wishes to assist. In the meantime, the original two Shenmue games can be played on PC, PlayStation 4, and Xbox One.
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Source: Shenmue Dojo