The update includes all new features from the Hyper version. It also retains the four new characters added in that game: Rachel, Seimei Abe, Momiji, and Shennong as well as the game debut of Xu Shu, a Dynasty Warriors character who first appeared in Dynasty Warriors 7 Empires. New characters are also added, including Mae Tamamo, Yinglong, a younger incarnation of Nezha, Kyūbi no Kitsune, Hundun, Kasumi from the Dead or Alive series, Sterkenburg Cranach from Atelier Arland series, and Sophitia Alexandra from the Soul series. The game expands on the original game's story by adding two new stories: "The Tale of the Latter Day", which takes place after the defeat of Hydra in the original game, and "The Tale of the Former Day", which is a side story that explains Orochi's origins as well as his secret with Da Ji. New stages are also added, including side stories to expand on the characters not prominently featured in the main story, alternative events on specific stages, and the chance to play stages through the enemy's perspective.
Source: Wikipedia, "Warriors Orochi 3", available under the CC-BY-SA License.