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There are some fight in the game (more in Shenmue II than 1), but you'll spend 90% of the time being a sleuth, asking people around you questions to progress, you can also do a lot of random stuffs not related to the main quest (collecting toys, playing arcade games, making money) so this game is also similar to other "life simulators" like animal crossing in some aspects.
Yakuza took a lot of inspiration from Shenmue and cribs on a lot of its "party tricks", but there's a vast amount of Shenmue it hasn't even attempted to replicate or advance on, like the life-sim elements.
I played Yakuza 0 very recently (nearly 100 hours at that), and despite Yakuza having the benefit of 10+ games (including spin offs) to refine itself and obviously the technological leap forward, a lot of the time I found myself missing Shenmue and occasionally wishing I was playing that instead of Yakuza.
Both series are favourites of mine, but they're a lot more distinct than people really understand.
Random battles on the street in Yakuza took away the "specialness" of the combat and eventually became annoying when you had to divert your route or throw cash to avoid enemies, not to mention it felt like "here we go again..." once story event fights began.
This.
The similarities with Yakuza are that it is set in Japan, has an open world, martial arts and lots of mini games. But they are not that similar really. I agree that Shenmue is more like LA Noire than Yakuza. It is mostly an open world detective/investigation game with a lot of talking to people and exploring the world. It does have fighting too, but a lot less than Yakuza.
And yes, some aspects are like a life simulation game. When I played Stardew Valley it actually reminded me of Shenmue believe it or not with its changing weather, day/night cycles, living town where NPCs have schedules.
Also the story is completely different from Yakuza.
Ne.
Yakuza is more action-paced with a lighter atmosphere (even on the original games). Fights are worse in Yakuza but it is far more relaxing.
Just watch a trailer and you will see. Both are great in my opinion but different.
But it does defy a lot of the RPG genre's trends (as of 1999 anyway), though I guess that was kind of the point. Even today it's not easily explained because it doesn't neatly fit in a genre definition.
https://www.youtube.com/watch?v=ykg5mUOt0l0
Check out this thread if you're unfamiliar with the game: https://steamcommunity.com/app/758330/discussions/0/3288067088112056658/
I think what is most similar between Shenmue and point and click games is that they are often about investigating a mystery/murder (examples are Gabriel Knight, Broken Sword, etc.) and involve a lot of talking with people and gathering clues. Shenmue does have a lot less puzzle solving than those games (but it has some).
I prefer Shenmue's approach. I loaded up the Eileen fight in Shenmue 2 earlier today for fun, and I found the dodge/counter commands way more responsive than in Yakuza. Plus, you don't have to mash A to get Ryo to stand up if he's knocked down...