And to everyone who complained before - the lighting is correct!! Yay!
The change to the lighting dynamics and hue and also turning off the rediculous HDR bleeds - it looks like Shenmue
I reckon they've got a super detailed version of the Ryo model that they are possibly keeping for E3 but it looks nice and advanced. Playable mini games etc. as well as the anciallary parts of the game like the notebook. I'm pretty confident of it hitting is schedule-ish now. I fully expect it will get delayed into 2018, always have.
I assume (I've not really been keeping tabs on this in detail) that they have access to all the old files and resources from SI and SII because those sound effects seem spot on. Too excited now!
Looks like SEGA need to pull their finger out on those ShenmueHD ports. Or at least smash some new water effects in on the SIIx engine, bang up the res and pump it out there. Should turn them a tidy enough profit for little work.