Sega has apparently been sitting on the completed new HD conversions of Shenmue 1 and 2 for intended release on Xbox Live Arcade and the PlayStation Network. Sources claim that the reason is that the company has yet to decide the fate of a potential Shenmue 3 and wants to do so before releasing the first two.

Of course, our source says that what has been reported elsewhere is apparently correct, but puzzling. While our sources claim that HD ports of Shenmue 1 & 2 are at least something that we have been hearing about for a long time, we hate to get too excited without Sega officially announcing them.

It is unknown exactly why or what Sega might be deciding about when it comes to Shenmue 3. What we can tell you is that a lot of those who played the first two Shenmue offerings would be very excited to finally get the third installment that they have always wanted.

Our sources tell us that we should get official word in the form of an announcement from Sega soon.