Reports from a Japanese PC gaming website suggest that Shenmue Online is no longer in development.
JC entertainment apparently stopped working on the game in May this year, but no reason has been given as to why development has ceased. An official announcement is said to be taking place next week.
Little was known about the game, but a number of screenshots and a trailer were released. Shenmue fans weren't pleased when the game was announced instead of a full blown sequel to the classic Dreamcast games, but still live in hope that one day a third game in the series will make it to next-gen consoles.
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