Shenmue Online [SEP] designer
over who had the rights to the game. However, in November 2005, it was confirmed in an interview with Yu Suzuki that even though the Korean company JCE had announced their withdrawal from development, since Shenmue Online is a Sega venture, they would fulfil their duty of completing it. Yu said despite the internet rumours, development was well on its way and following their original goals and target. He added that Sega Sammy would make an official announcement about its progress in the future.
At the China Joy convention in
beta in China in spring 2005, before a release later in 2005. When "Shenmue Online" was first announced, under the development of JC Entertainment, the screenshots released were considered by many "Shenmue" fans to be disappointing graphically, especially as being part of a game series that boasted ground-breaking graphics on the Dreamcast.
In 2005, JC Entertainment pulled out of the development of "Shenmue Online", and as they owned 50% of the properties of "Shenmue Online", there was legal debate