October 12^th, 2001 (12:00am) - Sega has announced that it is creating the sequel to Shenmue and a version of Phantasy Star Online for the Xbox console and promises that both titles will push the envelope in terms of technical excellence. The Sega-AM2 team is developing Shenmue II while the Sonic Team will be developing the networked RPG game, Phantasy Star Online. Phantasy Star Online (working title) for Xbox will provide content that will be a major factor in Microsoft’s broadband network strategy.

``In addition to the numerous Xbox game titles previously released by Sega, the significance of major titles such as ’Shenmue II’ and ’Phantasy Star Online (working title)’ being added to the lineup is just enormous,’’ said Robbie Bach, chief Xbox officer at Microsoft. ``Gamers will have the opportunity to enjoy masterpieces by world-renowned Yu Suzuki and Yuji Naka through the powerful graphics, sound and broadband network capabilities of Xbox.’’

``By bringing ’Shenmue II’ and ’Phantasy Star Online (working title)’ to Xbox, we are bringing Sega’s renowned franchises to even more gamers worldwide,’’ said Peter Moore, president and COO, Sega of America. ``We expect that both titles will be killer apps on Xbox and that the technical capabilities of the platform will surely bring both games to new levels in terms of graphics and experience.’’

Expect more good news soon.