Update: Shenmue 2When asked about the progress of the development this is what he had to say:
"Luckily things have been going smoothly. The original Dreamcast version of Shenmue II was compiled uniquely due to the limitations of the hardware, so we're redoing much of the coding, but things are advancing."
When asked about how Shenmue 2 will work with the Xbox controller this is what he said:
"The Dreamcast controller and the American specification Xbox controller are actually very similar," he said. "Therefore, the buttons are mapped alike on both controllers for battle, movement, etc. Only subtle things are being changed due to button placement on certain menus."
Ishikawa also stated that Sega/AM2 has no plans at the time to release Shenmue 2 for Xbox in Japan.