Saturday, December 13, 2025

Shenmue Development Timeline (May 1998 - Dec 1999)

Most Shenmue fans already know the broad story of the game’s development: the early demos, the ever-extending release date, and the rumors in games magazines suggesting that SEGA was aiming for something far bigger than anything it had attempted before.

Below is a timeline translated from the Shenmue Complete Guide book, which was published in Japan not long after the first game’s release. It reflects how Shenmue’s development was being presented and discussed at the time, before years of retrospectives and post-mortems filled in the gaps. Much of this information will be familiar to longtime fans, but it still serves as a handy snapshot of those busy Dreamcast years and how key milestones slotted into place.

I’ve also inserted relevant videos at a few points along the way where they help capture what players were seeing at the time as Shenmue gradually took shape.


21 May '98

DC Demo: "Tower of Babel"


At SEGA’s Dreamcast unveiling event, one of the demo videos shown was Tower of Babel, created by Yu Suzuki in just 10 days. In retrospect, this can be seen as a precursor to Shenmue.
  • Tower of Babel Demo Video:


6 October '98

"Project Berkley"


Billed as "Yu Suzuki’s answer after three years of silence," the new work was revealed in the fall, just before the Dreamcast’s launch. Announced under the codename Project Berkley, it was accompanied by a teaser that posed the cryptic question: “RPG?”

27 November '98

...And Its Name Is Shenmue


With the release of Virtua Fighter 3tb for Dreamcast, a special Project Berkley disc was included in first-print copies. It featured about 30 minutes of Yu Suzuki discussing the new title.

  • Project Berkley Video:

20 December '98

The Largest Game Premiere in History


SEGA held a large-scale premiere event at Pacifico Yokohama, drawing 15,000 attendees. With no footage having been shown beforehand, the sudden full reveal of Shenmue left a powerful impression.
  • Shenmue Premiere Video (from the Dreamcast Express Vol. 1 Disc):


19 March '99

Announced for Release as "Chapter One"


Though originally planned for a spring release, Shenmue was officially revealed at the Spring Tokyo Game Show as Shenmue Chapter 1: Yokosuka, with a new release date set for 5 August 1999. The announcement sparked heated debate.

1 May '99

Network Jungle II Showcase


During the three-day Golden Week event Network Jungle II in Ariake, the latest Shenmue footage was shown. The newly revealed high-end facial animations left visitors stunned.

1 June '99


Delayed to 28 October


SEGA announced a Dreamcast price cut to ¥19,900. At the same time, Shenmue Chapter 1: Yokosuka was postponed to 28 October, 1999, with a summer demo promised in its place.

19 July '99

Summer Stamp Rally Begins


On 19 July, a large-scale Shenmue stamp rally began across the Tokyo Metropolitan Subway system. Participants received a special stamp booklet, and demo stations were set up throughout the network.

30 July '99

6,800 Yen / 3-Disc Set Announced


At a SEGA press conference, it was announced that Shenmue Chapter 1: Yokosuka would be priced at ¥6,800 and released on three discs. A pre-order bonus item, the Shenmue Juke Box, was also revealed.

5 August '99

Summer Demo Distributed


On the game’s original release date, SEGA released a special demo titled What’s Shenmue: Find Former Senior Managing Director Yukawa. It was later distributed for free to purchasers of other Dreamcast games.
  • What's Shenmue Playthrough (ENG Fan Translation):


1 October '99

Release Rescheduled to Spring 2000


On the afternoon of 1 October, the planned 28 October release was officially postponed. A new target of Spring 2000 was announced. This third delay drew widespread criticism, and Dreamcast Magazine ran a special feature on the situation.

24 December '99

Unprecedented Early Release


Shortly afterward, the final release was set for 29 December, 1999. SEGA offered early delivery to those who had preordered through the Dreamcast online store. Some copies were shipped and arrived as early as 24 December, an unusual move that brought Shenmue's long year of delays to a dramatic close.

-- End of Timeline --
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