Ryo Hazuki's quest for vengeance continues after his father was murdered by a mysterious Chinese man known as Lan Di. Following a futile search in Yokosuka, Ryo receives guidance from Chen Yao Wen to travel to Hong-Kong and find Master Lishao Tao, who might hold the key to understanding Lan Di's identity.
Shenmue II is a direct sequel to Shenmue , continuing its story. The game features a mix of action, adventure, and role-playing elements, with Ryo exploring vast 3D environments, gathering clues, and participating in fighting sequences. The game's environments are based on real locations in Hong Kong, offering a larger world to explore compared to the first game. While there is more linear story progression, free-form exploration is still available during most of the game. Earning money plays a significant role, with objectives often centered around taking part-time jobs and participating in fights to earn cash.
Ryo's journey is accompanied by new characters who aid him in his quest. The game also introduces more quick-time events (QTEs), particularly in key sequences and major fights, which require rapid button presses to execute the correct action.
The Xbox version of Shenmue II includes a bonus DVD titled Shenmue: The Movie , featuring a condensed adaptation of the first game's story into a feature-length film.