Shenmue City is coming to Mobile Phones in Japan and is a sort of sidestory in the franchise. The game is coming to Yahoo! Mobage and Mobage Town and will have you playing as the main character. It’s supposed to have some nice looking visuals and a social aspect, however that has not been elaborated on yet.
We also now know that the game is being developed by the series creator Yu Suzuki and his recently created company Ys Net.
(Source : Andriasang)