Shenmue is a 1999 action-adventure game developed by AM2 of CRI and published by Sega for the Dreamcast. It follows the teenage martial artist Ryo Hazuki as he sets out in revenge for the murder of his father in 1980s Yokosuka, Japan. The player explores an open world, fighting opponents in brawler battles and encountering quick time events. The environmental detail was considered unprecedented, with numerous interactive 3D objects, a day-and-night system, variable weather effects, non-player characters with daily schedules and various minigames.

After developing several successful Sega arcade games, including Hang-On (1985), Out Run (1986) and Virtua Fighter (1993), the director, Yu Suzuki, wanted to create a longer experience, and conceived Shenmue as a multi-part epic. In 1996, Sega AM2 began work on a role-playing game for the Sega Saturn set in the Virtua Fighter world. Development moved to the Dreamcast in 1997 and the Virtua Fighter connection was dropped. Shenmue became the most expensive video game ever developed at the time, with an estimated production and marketing cost of $47–70 million, though this also covered some of Shenmue II (2001).

Despite sales of 1.2 million, Shenmue did not recoup its development cost and was a commercial failure. It received positive reviews for its graphics, soundtrack and ambition, though its slow pace and emphasis on mundane detail divided players. It attracted a cult following, appeared in several lists of the greatest video games of all time, and is credited for pioneering game mechanics such as quick time events and open worlds. Later appraisal has been mixed, with criticism for the controls, voice acting and slow pace.

After the release of Shenmue II, further Shenmue games entered development hell and Suzuki left Sega. In 2018, Sega released high-definition ports of Shenmue and Shenmue II for multiple formats. Following a successful crowdfunding campaign, Suzuki developed Shenmue III independently; it was released for the PlayStation 4 and Windows in 2019. An anime adaptation of Shenmue premiered in 2022.

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Shenmue