Monday, May 4, 2026

1999 Special Report: "Making of Shenmue" | Dreamcast Magazine

In July 1999, Japanese broadcaster NHK BS2 aired the first episode of its new Network Jungle III documentary series. Each installment explored how digital technology was reshaping Japan’s creative industries at the turn of the millennium. Episode One was called A Vision of the Future - A New Digital Era and focused on Sega’s legendary producer Yu Suzuki and his most ambitious project to date.

The NHK production crew followed Suzuki and the AM2 team inside Sega’s development studios over a period of six months, giving an unprecedented look at game creation on a cinematic scale. Viewers saw programmers tweaking lighting and weather systems, motion-capture artists digitizing martial-arts movements, and an orchestra recording the game’s sweeping score. NHK framed it as a glimpse into a new kind of entertainment: part film, part interactive world. The episode’s closing subtitle put it plainly: “A game that plunges you into a world of another dimension.”

Later that year, and still before Shenmue's eventual end-of-year release, the Japanese gaming magazine Dreamcast Magazine published a special feature about the game's development that was closely based on this broadcast.

The Shenmue special feature appears in Vol. 28 of Dreamcast Magazine (September 1999)

In this post, we’ll be sharing a full English translation of that magazine article, together with stills recaptured from the NHK documentary. Together, this will reveal how Shenmue was presented to Japan, as a milestone in digital culture in 1999.

The article translation begins below.

Note: where feasible screenshots have been re-captured directly from the NHK documentary video and other sources, based on those in the original article.

Shenmue logo

Shenmue Chapter One: Yokosuka

● SEGA
● Scheduled for release on October 28, 1999
● Price: 6,800 yen, 3-disc set (4-disc limited first edition)
● Genre: FREE (Full Reactive Eyes Entertainment)

Shenmue Part Two (Working Title)

● SEGA
● Release date undecided
● Price: TBD
● Genre: FREE (Full Reactive Eyes Entertainment)

"May that sense of wonder stay fresh in your heart forever."
(Image courtesy of the Shenmue Dojo: Shenhua 1999 calendar)

Special Report!

Shenmue Completion Status: 50%


With the demo [What's Shenmue] now in players’ hands, it seems like everyone has something to say about Shenmue. Do you still remember what it felt like the very first time you stepped into that world? The shock, the wonder, and the sense of being on the verge of experiencing a sweeping, cinematic epic.

In this feature, we take a fresh look back at those early impressions, using behind-the-scenes footage and other materials that have rarely been shown before. Join us as we revisit the excitement and emotion that first sparked the legend of Shenmue.

Shenmue Premiere: Never forget the excitement and emotion of that moment.

Ryo’s Journey Begins


Ryo Hazuki concept artwork

Ryo Hazuki: at the Shenmue Premiere (Dec 1998 / Jan 1999), the entire audience was left holding its breath when his concept illustration dissolved into a beautifully rendered CG world, cherry blossoms swirling around him. Accompanied by striking, unforgettable visuals, the young man who rises to his feet and begins to walk is the 18-year-old hero of the story, a student at Yokosuka High School.

"Keep friends, those you love, close to you" - carrying his father’s final words deep in his heart, Ryo sets out on his journey…

Creating a Living, Breathing Town


Left: aerial photos of Yokosuka. Right: designing the Dobuita Street map.

Ryo at New Yokosuka harbor

Yokosuka, the setting of Chapter One, was recreated using aerial photographs and detailed maps to capture the town with striking realism. The development team found themselves wondering, “Are we even making a game anymore?” That’s how uncompromising their pursuit of authenticity became.

Left: dialogue lines in Excel. Right: developer meeting with Yu Suzuki.

Note from Switch: the screenshot shows an early version of Ryo's first dialogue with Megumi at the Yamanose shrine:
Ryo: Megumi. What's wrong?
Megumi: Hey, Ryo! Um, this... [truncated]
Ryo: Is she all alone?
Megumi: Yup. See, the other day, when it rained, ... [truncated]
Ryo: A black car...
Megumi: My big sister saw it. [truncated]
But mommy doesn't like cats, so [truncated]
Kitten: Mew, mew, mew.
Ryo: What a loud voice she's got.
“If a million people play it, there will be a million different experiences.” The hundreds of characters who appear in the Yokosuka chapter each have an enormous variety of possible conversations, including hidden lines that most players may never hear. The sweeping flow of the story and the everyday chatter found in even the smallest interactions were reviewed again and again in meetings. Staff often secluded themselves at the company lodge, working straight through weekends to create new material.

Once a scenario was completed, it was checked, refined, and then woven back into the game.

Ryo at Tamura Butcher Shop

Recreating the Real Thing


Motion capture

A state-of-the-art motion-capture system was used for the project. By adopting an American-made wireless magnetic setup, the team was able to record even the most intense movements without restriction.

Motion capture for Iwao Hazuki

The Concept of 4D

Varying weather conditions

To recreate a world rich with realism, Shenmue introduced something entirely new to traditional 3D graphics: the dimension of time. With its “Magic Weather” system, which controls shifts in weather and atmosphere, and “Time Control,” which simulates the real-time passage of hours and seasons, time moves forward, the months turn, and the world changes naturally around you.

Lighting during the day and night

Super Realism


Floor plan and interior. [Note from Switch: this does not appear to be a floor plan that has appeared in the games.]

Every detail of Dobuita Street and the interior of the Hazuki home was designed by professional architects and specialists. The result is a world that goes beyond simply copying reality: one that is filled with authenticity, texture, and a genuine sense of everyday life.

Hazuki Residence images. [Note from Switch: as seen in this early footage, the kitchen had sliding doors on two sides of the room].

The Daily Life Cycles Program


More than 200 characters appear in Shenmue Chapter One, and every single one of them has a programmed daily routine. They wake up in the morning and tidy their homes, go to work during the day, and return to sleep at night. Watching all of them go about their lives simultaneously is truly impressive.

Whiteboard and Hirata-san game images [Note from Switch: the snippet of text says "Inside the skirt, the legs..." and "The old lady...".]

People, Not Just Symbols


Each character has their own face, body type, and daily life. You can hold natural conversations with every one of them, and unlike the traditional RPG characters of old, who existed only to deliver bits of information, these people feel like real individuals within the world.

Top: early character lineup sheets from Shenmue's development. Bottom: Tao-san from Aji-ichi restaurant.

Satisfying Impact


For the game’s Free Battle system, capturing every bit of motion-capture data would result in an unmanageably massive amount of information. Instead, the motion designers carefully extract only what’s essential, refining and shaping these to recreate movements that have realistic weight and impact.

Free Battle

For Beginners


The QTE (Quick Timer Event) system allows anyone to experience action scenes with the punch and pacing of a movie. To fine-tune the controls and overall feel, even staff members unfamiliar with game, such as female employees with little gaming experience, were encouraged to try it out, and their feedback led to repeated adjustments and refinements.

QTE footage from early development

Cutting-Edge Technology: High-Poly Faces


High-poly Xiuying

A special demonstration program was created to show just how far Shenmue’s technology could push visual expression. In preparation for its debut at the “Network Jungle” exhibition in May, Yu Suzuki personally gave detailed direction, down to the angle and type of light that should hit each character. Even after the initial version was completed, it was reviewed repeatedly in meetings with the staff, refined again and again until everyone was fully satisfied.

High-poly Oishi-san


Shenhua Ling


Shenhua

For the main cast, each character’s movements and voice are captured from the same actor, perfectly synchronized. Using this new “motion actor” approach, a new heroine, Shenhua, has been brought to life, and her appearance is eagerly awaited.

Everything Started from a Single Composition


The majestic themes of Shenmue, with melodies performed on traditional Chinese instruments like the erhu (Chinese violin), were not outsourced but created entirely by Sega’s in-house staff. Rather than visuals guiding the music, the music itself served as the inspiration, helping unify the team’s creative vision for the world of Shenmue.

Recording Shenhua's lines

The orchestral pieces that drew so much praise at the premiere event were crafted with great care by Sega’s sound team. They’ve even been released on CD, making them well worth seeking out.

Music composition and recording

Filled With the Passion of Many 

Yu Suzuki


Yu Suzuki

Yu Suzuki says that ever since development began, he has been running at full speed. The enormous story that has taken nearly five years to craft involved a vast number of staff members. Suzuki oversaw every part of production and continued refining the work without compromise until he was satisfied. His passion is a powerful force that inspires everyone around him.

Yu Suzuki during developer meetings

AM2


Shenmue is not the work of Yu Suzuki alone. Supporting his passion on the front lines is the talented AM2 development staff. They too refuse to compromise, often shutting themselves away to focus completely as they create a world unlike anything we have ever seen.

Development studio scenes


Editor's Log


The Power of Persistence


Shenmue was first revealed to the public at last year's Tokyo Game Show under the name "Project Berkley." Hard as it is to believe, nearly a full year has passed since then. With several changes to its release date, development has stretched longer than initially planned, and in recent months media coverage has tended to focus only on small, surface-level details.

But Shenmue possesses a scale that is far greater than that. Its world is built with such astonishing depth that it can feel impossible to keep up. In concentrating on tiny details, it seems we may have lost sight of its essential qualities. The same may be true for players. After a long ascent up a mountain trail, so to speak, you may find yourself looking only at the flowers at your feet rather than the vast landscape around you.

This feature article was put together to help rediscover what Shenmue truly represents: its core themes, its power, its grand scope, and the sense of awe and excitement it inspires. Now that development is finally approaching completion, we want you to remember the wonder and emotion you felt at the very beginning.

Suzuki smiles with delight as he watches the reactions of young children. Moments like this are what fuel his passion. (TGS 1999)

View the NHK "Making Of" Documentary (July 1999)


Below is the 1999 NHK "Making Of" Documentary from which this magazine article and screenshots were derived, with English subs.

If you have not yet seen it, it is highly recommended:



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