I think its best I don't talk about 4:3 vs 16:9. All I will say is that for technical reasons parts of the game are currently limited to 4:3. If you play the game in an emulator with a widescreen hack you will see some of the issues.
We've ported the xbox version of Shenmue II so yes it does have stencil shadows.
Hello, just wanted too ask you to clarify something. When you say widescreen hacks, are you referring to the option in like NullDC to turn on extra geometry, or referring to a true widescreen hack like found in this thread? We have pretty much solved making the games widescreen on Sega Dreamcast and fixed the issue with the geometry clipping where it renders things off screen differently.
http://www.shenmuedojo.net/forum/viewtopic.php?f=37&t=50595
Old widescreen hack
http://i.imgur.com/Xv2I3OU.jpg
New widescreen hack
http://i.imgur.com/AS3NBC5.jpg
https://www.youtube.com/watch?v=JaPngFyOs8s