The Shenmue series was originally intended as a trilogy but a third game has never seen the light of day.
A trademark application which emerged last week for Shenmue 3 has been confirmed as a hoax.
The indication that Sega might be gearing up to develop a third entry to its cult classic Shenmue series was confirmed to be fake by a company representative talking to Eurogamer
'Sega has confirmed that the recent application for the trademark of Shenmue 3 is a fake and is looking into the origins of this application,'
said a Sega spokesperson.
The trademark has since been removed by the Office of Harmonization for the Internal Market (OHIM), the department responsible for trademarks in the EU.
It is not known who filed the fake trademark, but this will be the third prominent one that has caught people off guard this year with other trademarks being filed for Half-Life 3 and more recently Fallout 4.
The Shenmue series was apparently originally conceived as a trilogy and a third entry has been rumoured and talked about several times with a report in 2003 emerging that Sega was definitely working on the game and that a script had been written.
At the time, Shenmue broke the record for the highest production costs of a video game. The title was released on the Dreamcast and the series appears to have died with the ill-fated console, although the Shenmue II did also get a release on the Xbox in 2002.