The first beta of the game is easily the most interesting of the two that are available so far. Despite it clearly being a very early version of the game, eight levels are in place and can all be completed, and there is even an ending of sorts when the beta is completed. This version was worked on in 1992 -the year that SEGA actually wanted the game out, to keep in line with the "one Shinobi game ever 2 years" policy. Revenge of Shinobi was released in 1989, Shadow Dancer was 1990 and Shinobi III should have been 1992, until the game was held back and was released in 1993.

As not much really works or was completed for this beta, we don't have a clear idea to what kind of features and enemies there would have been in levels as this version is so early. Thankfully it does at least show that the levels were going to be mostly completely different from the final game and there are also some other ideas that were dropped such as the additional ninjitsu magic attack and more.