Yeah I think its only going up the sasuke retrieval arc. But I would want them to go up to shippuuden. But seeing how the anime here in the US has not caught up with Japan they wont release it yet. I think the developers are going to make the naruto ps3 project a series of games for the ps3 like they did with the ultimate ninja games with ps2.
We'll probably be as far into Shippuuden as Japan was when they got their first Accel and GNT EX (hopefully further), so I believe it will be after at least the first four major fights in Shippuuden, hopefully.
It would be really lame if they didn't add Shippuuden.
I am happy alone with the fact that they are making a naruto for the ps3 also I hope its roaming like rise of ninja. Except this game will be better since its being made by Bandai Namco the creators of the Ultimate Ninja series.
Well they will start off in the beginning of the entire Naruto series and follow through to the Sasuke retrieval arc. SKIP THE FILLERS. ALL OF THEM. Then we'll see the Kakashi Gaiden and unlock Obito, the Fourth Hokage and Rin. Begin Shippuden arc and end at the Sasuke Appearance arc when he kicks butt and takes names.
Basically, just follow the manga and not the show. The TV show will run them on a snag storywise.