great and I am wondering does this require the mugen for performances or would the effects pedals also work with a regular shamisen and a regular mic?
You might be able to get some cool sound if you tweak around a bit. Kyle will have to answer how much tweaking they did.
I have Guitar Rig on my computer. It takes a clean guitar signal and then uses the computer to simulate real guitar gear like amps, effects etc. While it is nowhere near hardware, it sounds really good.
The thing is though, that what is picked up by the pick-ups does not sound the same as if you recorded your electric guitar with an ordinary microphone. Thus everything is optimized for another sound than the acoustic one you can hear with your ear.
I tried putting Guitar Rig on a recording of me playing shamisen but it sounded worse than playing guitar.