It sort of continues the story -- it's the same protagonist, and the game deals with the consequences of the ending of the first game -- but there's no need to play the first game to understand what's going on. @mattll: the game has only virtual controls. I loved the swipe controls of the first one, but didn't miss them here, and they would have been impractical anyway. At $2.99, Samurai II is not a bargain: it's a gift. A beautiful, bloody gift.
This is by FAR the best graphics I have seen to date on the iphone 4, 60 frames per second while looking stunning, the art style is absolutely amazing!