Ryu has more tricks up his sleeve than katana combos and an ultimate technique. Ninja Gaiden 3 has ninpo too and the build at Tokyo Game Show let players transform into a fire dragon.

Team Ninja released a new trailer for the 2012 game at Tokyo Game Show this week.

Including a few of the mysterious new villain.

Team Ninja lead Yosuke Hayashi really wants people to feel what it’s like to cut through flesh and bone. Ninja Gaiden 3 will utilize PlayStation Move motion control to put Ryu’s katana in a player’s hand.

Yosuke Hayashi, Team Ninja head, discusses Ninja Gaiden 3′s difficulty and future projects in this interview.

“When Ryu is unmasked he is a regular man, just like us. Therefore, he must feel similar emotions. We want to show this side of Ryu, his human side, and how he can relate to everyone,” Yosuke Hayashi said when we discussed Ryu’s character.

“Ninja Gaiden 3: Razor’s Edge is still Ninja Gaiden 3, but we plan to utilize the new controller for the Wii U to do new things,” said Yosuke Hayashi, Team Ninja head, in a Siliconera interview.

The first thing I was tasked with was sneaking up on a rooftop-mounted soldier with a rocket launcher.

Ninja Gaiden 3 will come with cooperative and competitive online multiplayer modes, and the ability to download new challenges, characters and missions.

The Wii U already looks to have nicer third-party developer support than its predecessor.

I got a taste of Ninja Gaiden 3 last night when I played the E3 demo on hard.

Take a look at the new Ninja Gaiden, slated for release early next year.

Something isn’t right with Ryu Hayabusa. He’s back in bloodstained shrouds for Ninja Gaiden 3, but his right arm… glows red after corpses pile up.

A blip from Famitsu notes Ninja Gaiden 3 is on track for release sometime in 2012.