People are usually mixing the two story sources. There is
1. the
novel Yu wrote that has
11 chapters and is set since Virtua fighter quest RPG (around 1994), and then
2. the
16-chapters Shenmue scripts that were written by Kenji Miyakami & co. as Shenmue games were under development. Yu is always refering to the original 1994 11-chapters novel and his employees (Shin Ishikawa) did talk in 2003 about 16 chapters of the Shenmue scripts.
Yokosuka wrote:16 chapters = 11 main chapters + 5 transition chapters
Not really... Because the interview was held in 2003, after Shenmue 2 was released. And at that time, Yu Suzuki had already decided to drop the chapters 3&4 off the original 11-chapters novel (Shanghai & Suzhou). So Shin Ishikawa couldn't have counted those chapters from the 11-chapters novel in the 16-chapters Shenmue script story...
Spaghetti noted a mistake on the 2003 interview board
. And indeed, Shenmue is only 3 chapters (off the 16-chapters count). But we know Bailu village was worked on during Shenmue 2's development and as Kenji Miyakami said in a 2015 video : cut in the end. Maybe Shin Ishikawa forgot that this part was taken off Shenmue 2... Which would give in the 16 chapters story :
Chapter 1 : Yokosuka
Chapter 2 : The boat (canceled)
Chapter 3 : Hong-Kong
Chapter 4 : Kowloon
Chapter 5 : Guilin
Chapter 6 : Bailu village
We can assume those 6 first chapters cover the following chapters from the 11-chapters novel : 1 : Yokosuka, 2 : Hong-Kong, 3&4 were dropped, and a part of chapter 5 in Guilin, which makes 6 or 7 chapters remaining from Yu's novel (depending on if he did count Guilin as totally finished with Bailu or in another chapter). So we have those 6 Shenmue script chapters + 6 or 7 remaining chapters from the novel, which makes 12 or 13. From the total of 16, that makes 3 or 4 chapters we have no clue about. If Ishikawa did count right, I wonder what story those 3 or 4 additional chapters cover.
BTW, We should not complain about the Suzhou & Shanghai chapters cancellation for it's been decided before Shenmue 2's development (or I guess they would have counted unused chapters as they did for the boat and Guilin would have been numbered 6 or 7 in Shenmue2 since the Suzhou & Shanghai take place between Hong-Kong and Guilin).
Since the Project Berkley video is older than Shenmue Saturn, it would be interesting to know if chapter 3&4 were developed until some point for the Saturn...
And I really hope Yu will make those chapters available as flashbacks in the future games...playing scenes or even video only...