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Ninja Gaiden 3 is well into development and while it's a numbered title, Team Ninja head Yousuke Hayashi says it's also a reboot.
In an interview with Famitsu (translated by Andriasang) Hayashi explains, "Ninja Gaiden 3 is a numbered title. We're developing it with the idea of restarting at the beginning, saying 'We'd like to make the action game that's most interesting for the current era," Hayashi told Famitsu. "With this meaning, it's going to be a game that's not bound by the past more than necessary. Of course, we will be valuing the past, but in a good meaning we'd like to make it into a game that's not tied down by the past."
Ninja Gaiden is often compared to Devil May Cry, while both series rebooting in the next installment, based on this art Ryu hasn't undergone a dramatic style - something which gave Dante a lot of flack.
Hayashi also mentioned the concept art below, "He seems to be doing something with his right hand," pointing out Ryu's bloody hand. "Also, there's something not normal about this hand. It's covered in blood, but there's something unnatural regarding the blood."

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