Shenmue[a] is an action-adventure game developed by Sega AM2 and published by Sega for the Dreamcast in 1999 in Japan and 2000 in other territories. Directed, written and produced by Yu Suzuki, it is the first game in the Shenmue series. The player controls martial artist Ryo Hazuki as he sets out in revenge for the murder of his father in 1980s Yokosuka, Japan. Combining open-world exploration, brawler battles and quick time events, Shenmue’s level of detail was considered unprecedented, with a day-and-night system, variable weather effects, non-player characters with daily schedules, numerous interactive objects, and various minigames.
After developing several successful Sega arcade games, including Hang-On (1985), Out Run (1986) and Virtua Fighter (1993), Suzuki wanted to create a longer experience, and conceived Shenmue as a multi-part epic. AM2 began work on a role-playing game for the Sega Saturn set in the Virtua Fighter world. In 1997, development moved to the Dreamcast 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 between US$47 and $70 million, though development also covered some of Shenmue II (2001).