Team Ninja didn't offer any information when it silently deployed these new Ninja Gaiden 3 screens, aside from some background about Ryu's curse, so we can't say for certain what's going on.Is that fire dragon a Ninpo attack? A transformation? A boss? Whatever it is, it's pretty.
What's not so pretty is Ryu's arm. It turns out that, when not surrounded by an aura of blood, Ryu's newly cursed arm is just covered with gross veins or something. Good thing Ryu doesn't ever stand still long enough for us to get a good look at him while playing.