In an announcement that comes as a surprise to no one, Sega-AM2, the developer of the Shenmue series, has confirmed that the third installment in the series is under development. Shenmue III has no definite time frame as of yet, but the game's planning director was brandishing six new character designs as he made the announcement, a fair indication the game's story has already been hashed out to some extent. The pictures, unfortunately, are unavailable for public viewing at this point.
Shenmue III probably won't be showing up anytime too soon, as there are no game or story details available at the moment. Additionally, when asked which platform the game will be released on, Mr. Kasahara said only that the game would "appear on the [system] on which it will reach the most players."