I've been thinking about this and wanted to put my 2¢ in, but its a bit of a write up here so I have not posted my thoughts yet. Sorry in advance for the impersonal rambling.
First of all, before I am just labelled as an apologist, yes, I feel that the Kickstarter Ryo could have "looked better" (2bf, we never talk about what the trailer got RIGHT- I'm tempted to make another topic on this point). For a series that was known for all things, its groundbreaking graphics, I think we all wish they'd have gotten it perfect right away.
So why are YsNet seemingly struggling with the design of Ryo, THE MAIN CHARACTER?
It would be easy (provided they had access to all the assets) to copy and paste Passport Ryo or the Sega All-Stars Ryo (Which as Esspiral has just pointed out, had lower quality textures!) Nevertheless, I applaud YsNet for going at this with ground-up work on the design, even if it's going to take some work from here on in, to get it up to MODERN standards and expectations without looking like trash. We want to go BEYOND Passport Ryo. You can't do that just by adding polygons to an old model (Sumo Digital took that the maximum it could be). You need to revisit the very design.
Nevertheless, I think Ryo's design is in a bit of a bind, and I think this partially explains the 'quality' of the KS model in contrast to the rest of the trailer. The real problem is two-fold:
> With today's tech, they are going forward into an "uncanny valley" effect for fans, going from a DC-era Ryo (yes, Unreal Engine 4 in 2017, should easily go beyond the Passport Ryo) we all know and love to modern gaming's hyper-realistic tech demos of individual pore-modelling and facial capture, and
> He is a made-up character, evolved from a character from gaming technology's earliest CGI work, with no real life reference to his design.
Ryo isn't modelled on a real life person, rather he is just an idea bourne out of concept art, and the Virtua Fighter (honestly primitive by today's standards) CG image of Akira for the original Virtua Fighter. See below.
http://s29.postimg.org/b2upshpmf/Ryo_Evolution2.jpg
To contrast with a completely different game series, the design of Solid Snake in Metal Gear varied from being based on actors ranging from Kyle Reese, Christopher Walken, Mel Gibson until he had an established "look".
http://i.imgur.com/Q6E3iCk.jpg
Even so, compare MGS3 (or 4) Snake (PS2) to MGS5 Snake (PS4) where (particularly with the motion captured facial expressions) he looks more like his voice actor, Keifer Sutherland.
Furthermore, Snake's look is based on adult Western action movie stars from Hollywood, of which is there no short supply. Anybody think of a Ryo Hazuki lookalike?
Simply put, Ryo's model and design is stemmed from the earliest work/tech demos of polygon graphics . He has been "designed up" as opposed to "designed down".
Watch this clip of the Project Berkley video, regarding Shenmue 1's development during the 90's. I find it illuminating and very relevant to the current debate. Even for the original game, they had to make clay models to truly convey Yu's 'vision', as the sketches and CG renders weren't enough to produce satisfactory results for the SATURN model:
https://www.youtube.com/watch?v=Tu86tlnFLVE#t=26m26s
I think this goes a long way explaining the 'poor' quality of this incarnation Ryo. This problem is now amplified with today's new graphical expectations (let alone two years from now). I think Yu can't just copy and paste 'Clay model' Ryo with it looking cartoonish by today's standards. But of course he's making it for the fans, fans who have certain expectations of what Ryo looks like.
The difference now is that graphics have advanced so much the standard for today's new IPs is basically to draw inspiration from real life, which would have just been inconceivable/impossible before outside of the concept art stage. This is not a bad thing for games, after all this is what real artists do. The technology now basically allows it in full.
Let's consider this trend in some of the most graphically acclaimed new games of late:
Ellie in The Last of Us = Ellen Page
Lara Croft in the Rebooted Tomb Raider = Camilla Luddington
Johnathan Irons in Advanced Warfare = Kevin Spacey
Solid Snake = Keifer Sutherland
Again, I ask- Can anyone think of a Ryo lookalike?
Now, we were all very impressed with John Sweeney's Ryo "render" for his Cook and Becker print:
http://i.ytimg.com/vi/Mqcj4XIIkhs/maxresdefault.jpg
But if you watch the 'making of' video, you can see that the image ( from behind so you can't see "Ryo's" face, I might add ) was derived from a photograph of some dude posing in his apartment :
https://www.youtube.com/watch?v=Mqcj4XIIkhs#t=0m32s
Anyway, I am fully confident the model will surpass this design technically. However, having been so long since the Dreamcast days, I'm sure this is going to be offset by design. For a project that's barely gotten off the ground, I think this, at least in part, explains the difficulty here .
They want to technically 'surpass' the original Ryo, but they also want fan service . If so, perhaps we shouldn't be suprised at all if Ryo looks somewhat 'different' in the final game.
So why did they show it at all? I don't think the model was in there to impress anyone technically, not at all. In fact if you notice, the actual E3 reveal CUTS OFF before the point Ryo is showed. I think it was there to show, even at this early stage to us as THE FANS, who have had so many broken promises/leaked images of newsprint/concept art over the years that this is a REAL GAME being made that needs to be kickstarted to the best it can be. Here it is, this is where we are, this is were we want to go etc. It was a statement that it wasn't a mobile game, nor Dragonball Z online with fancy CGI fireworks. THE ACTUAL SHENMUE III FULL 3D ADVENTURE EXPERIENCE.
The more I think about it, while it is a shame that it couldn't have been as groundbreaking as Shenmue was in the first place on the Dreamcast, the more impressed I am that this was displayed. They are an indie studio without the resources to make fancy CGI trailers. They showed us SOMETHING REAL, IN GAME. Anyway, imagine the backlash to an indie Kickstarter whose concept video was based off a fully produced CGI trailer (what kind of scam is this?!) or a bunch of sketches (what is this crap! Let us see the game!). They made an honest effort to show actual STUFF. Of course, I haven't even mentioned the fact that it's essentially gone from back-room meetings in different countries and hush-hush events by Yu-san himself, getting confirmation, THEN having to produce a trailer ready in time for E3.
They are NOT cutting and pasting a Dreamcast Ryo. They are making a game to try and meet fans expectations whilst being technically superior. But as we can see, even from the old project berkley video, this is always going to be a challenge for the reasons I've stated about Ryo's design. It's going to be a challenge. I'm rooting for Yu-san 8)
EDIT: Sorry, I should have make this clear, my intention is not to shit all over the DC Ryo model. I love that model, it's our Ryo . It holds up even today. I'm just trying to talk about graphical standards in gaming as it has evolved since, and what would be 'expected' from the Unreal Engine in 2017.