The main character Ryo Hazuki, a boy who was born and raised in Yokosuka, learning martial arts from his father Iwao Hazuki, a master in Hazuki Jujitsu, grew up to be rather reckless, but with a strong sense of justice. One day when Ryo comes home, he finds a stranger forcing his father to give information on where the "Mirror" is. Though being a master in martial arts, his father was killed before Ryo's eyes, for rejecting the stranger's demand. Why did Iwao have to die, what is this "Mirror", who is this stranger......? Ryo sets off on a journey to find the answers.

Players will be freely controlling the main character Ryo Hazuki, gathering information and adventuring through the story. In the process of solving mysteries, players will run into various events. For example there is the QTE (Quick Timer Event), where you are required to quickly press the buttons which will be displayed on the screen. This easy-control event where you only have to press one button, will amaze you with magnificent action. Depending on whether you succeed or fail in an event, the story will unfold in various ways. The scenario of the 1st Chapter, would equal to an amount of 20 to 30 scenarios of a two-hour movie. With control easy enough for little children to play, and with depth deep enough for experienced game fans to play, a wide range of players can enjoy Shenmue.

By referring to the saved data of players, timely support on the game progress will be provided. Through the internet, the players can obtain information based on how far they have gone in the game, and also get their internet ranking.