Overall, I was pretty impressed with the graphics. The character models in the fight sequences look fantastic. Even better than they did in Yakuza 2. All the environments I ran into, outside of the fight scenes, were all pre-rendered with the switching camera ala-Resident Evil. It takes a bit getting used to after playing through 3, but isn't too far removed from the camera in the first two games.
The biggest difference I found with the camera, was in the actual fights. It stays really close to the main character. I don't know if this'll be a problem further on in the game, but I didn't have anybody throwing stuff at me from off-screen so no problems yet. It seems like they're going for more of an "in your face" brutality with the action.
The health bar's gone. Instead, you have the screen getting red around the edges when you're not doing so hot. More in-line with the majority of modern games, so it doesn't take too much getting used to.
The cut-scenes were the same style as the MGS games on PSP, but looked pretty nice.
Anybody else have a chance to play though the demo yet?