Seems like Simon Jeffery has corrected his statement:
http://www.gamasutra.com/php-bin/news_index.php?story=19807
Personally (imho) this could be due to his age and number of years at Sega or it could be due to Shenmue and now Virtua Fighter 5 not selling as well as was hoped in Japan as either a PS3 or XBox 360 port.
*Note that Virtua Fighter 4 and Evolution were shipped years into the PS2's life cycle and most likely posted huge profits for Sega in Japan mostly.
I was and still am a big Yu Suzuki fan since the early Saturn dayz, I really got into flat shaded VF1 with flaws and all after renting a Saturn in 1995 from Blockbuster and went on to get the Saturn during the DaytonaUSA+VF2+Virtua Cop combo in 96, then got Fighting Vipers, Fighters Megamix pretty much all on release and more.
Its too bad that in my opinion Sega's games got very little coverage and that the consoles did not do that well thanks to the unstable nature at Sega's console division, reguardless to the OP there is no chance in hell that we are ever going to get Shenmue III and personally as a fan I believe it does not make sense to make such a game.
The main reason why I believe it does not make sense to make Shenmue III is because its a "sequel game" so it is implied that you should have played the previous games.
Basically Shenmue 1 and 2 would have to be remade, reprogrammed and so on for the console it would be running on. Also there would have to be an interest in the console platform before doing so and reguardless of what anyone may say I don't think the game would do that well on XBox 360 because the old XBox 1 port of S2 did poorly.
Another thing is that the game is very much a single player type experience and there is this current trend to demand that shipping current gen games have online MP features by game reviewers/article writters and it is my opinion that, that is the reason why a title like White Knight Chronicles ended up with a online mode even though it was supposed to be a SP RPG.
I do hope that mkillio does go over and check the Yakuza (Ryu Ga Gotoku) thread and look at the 20 minute video and the RGG Kenzan videos so that you can see that as for the Playstation 3, your dreams of what a current gen Shenmue would be are exceeded.
currently the Ryu Ga Gotoku series is highly acclaimed in Japan and it is supposed to have a good steady following from the PS2 (1 and 2) to the PS3 (Kenzan) so part 3 is expected to not only sell lots of copies but help sell more PS3s in Japan.