Crisis in Shadaloo. A news report showcases the fact that AN troops have entered Shadaloo City and have managed to knock back the opposing forces. Chun-Li, a reporter for a TV station, reports on the progress they've made and that whilst this has been a victory for them, they still have a long way left to go. Bison, the leader of Shadaloo, has a heavy guarded fortress, which he created from all the money he gained from selling drugs. In the fortress, Bison watches the report.



Chun-Li tells viewers how Bison has managed to capture over 60 relief workers from a village, along with 3 AN troops, and is demanding 20 billion dollars for their release. Bison's troops are busy putting said hostages into a pit. But Bison has a different plan for the AN troops, as Zangief brings them across to him.



Bison tells the troops to attack him, as that was what they were sent here for, so they do. But they aren't a match for his great strength as he easily defeats them all. Before taking on the third soldier, Bison sees Chun-Li attempt to talk to the Commander of the AN forces: Guile. But he doesn't want to talk to her and he and T. Hawk (the guy with the bandanna...no seriously, that is T. Hawk) turn to leave.



But then he changes his mind and, after snatching Chun-Li's mic, Guile addresses Bison directly and shows off his muscles. Enraged, Bison gets Dee Jay, one of his technicians, to cut out the signal on Shadaloo everywhere and start his own. Within seconds, all anyone can see on a TV screen is Shadaloo's skull symbol, something which Chun-Li's assistant E. Honda finds out.



Bison starts to get into a verbal battle with Guile, but Guile mouthed off on purpose. He wanted Bison to do something like this so they could locate the source of his signal, which is something Cammy, another part of the AN force, is working on. Dee Jay finds out someone is trying to trace them, but Bison doesn't seem to care and instead starts a timer. He gives Guile 3 days to get the 20 billion dollars, otherwise all the hostages will die and he will be responsible for that.



All of Bison's forces start yelling their leaders name, but Guile just calls out to the hostages and says, if they can hear him, they just need to hang on as the AN are coming. He also tells Charlie to hang on, then the signal is cut. Bison has heard Guile's speech and inspects the dog tags on the final AN soldier, which read Carlos Blanka. Or Charlie, which means he is Guile's buddy and also means it is extra reason to hate him. He has his troops take Charlie off to the laboratory. Meanwhile, Guile finds out from Cammy that Bison cut the signal too soon, so they cannot trace exactly where it came from.



Elsewhere, Ryu and Ken, two karate master con men, make their way through a large warehouse which has a lot of illegal stuff going on in it, such as cage matches. Ken asks Ryu if he feels safer now that they are off the streets, just as a body hits the floor -Vega, a fighter who is armed with a talon, has had another victory.



Ryu and Ken are taken to Sagat, who they are making a deal with. Ryu says that he has a nice party going here, especially since there is a curfew on. A helicopter flies over and they all hear the pilot announcing that the curfew is 7:00pm and anyone breaking it will be shot on sight. But Sagat says that here, in Shadaloo City, nobody gives him orders. Ken gets down to business and asks Sagat if he has the 100,000 dollars. He does. Sagat asks them if they have the weapons. They do.



But, Ryu says, they will take the money, leave, then contact Sagat on a walkie talkie and tell him where the weapons are. This seems like a great plan, but as Sagat leads them out of the room, he reveals that his men have already found the weapons and they have them right here. He then tells them to get ready to die as his men lock and load. He orders them to fire, and they do...but rather than get riddled with bullets, Ryu and Ken get hit by tennis balls. The weapons were toys!



A real fight breaks out though as Ryu and Ken beat up several men without problems, until some guys with real guns arrive. They surrender, but Sagat is impressed with their combat ability and says they weren't just all talk. Meanwhile, at Bison's hidden fortress...



...Bison in inspecting what is going on in the lab. Dr. Dhalsim, someone he captured and made him work for Shadaloo, is the one responsible for Charlie's treatment. Dhalsim hates working here but he hasn't got much choice, as Bison takes a look inside the chamber where Charlie is being held. Bison believes Dhalsim will create the perfect warrior for him.



At the moment, Dhalsim has just got it so Charlie is seeing nothing but imagery of people suffering. Bison says that this is just educational software and then, after he has been subjected to enough of that, his other scientists will get to work on his body. Several scientists then wheel various chemical substances, such as mutagen and plasma.



Back in the warehouse, Sagat has decided to get Ryu and Ken into the cage fighting and has Ryu go first. He is up against Vega, who goes maskless for the fight. Ryu is given a sword, but after impressing the crowd by swinging it around, he throws it at part of the cage, missing Vega but making him think he shouldn't fight with a weapon either.



So he decides to also ditch his talon for this fight, which starts. But before Vega or Ryu can hit each other, everyone hears a loud crash as, from behind, an AN vehicle smashes through part of a wall. Ryu and Vega leave the cage as everyone else tries to get out.



But they can't because AN troops pour into the building as Guile, the driver of the vehicle, gets out and announces that everyone is under arrest. The next morning, he and the other chief AN guys have a staff meeting. Colonel Sawada announces that his commando unit is ready, but they need to know if the strike will be by land, sea or air. Guile said he knew that question was coming, so he asks Cammy if she has made any progress. But she hasn't as she wasn't able to trace Bison's signal. From the data she did get, she believes the base is somewhere near a certain river which she points out on a map screen.



Just then some waiter guy jumps on the table and runs at Guile whilst brandishing a knife, but Guile kicks him down. Cammy takes a look at his body and finds a tattoo on his chest, which she refers to as the "tongue of Shadaloo". This tattoo is also on Sagat, as he and Vega begin their plan to take revenge on Ryu and Ken.



However, Guile knows that Sagat has done deals with Bison before. He tells T. Hawk and Cammy that Sagat must know where Bison is, as he has supplied him with weapons. They need to get someone into Sagat's gang so they can find out where Bison is and report this data back to the AN forces. Cammy thinks that might prove to be difficult, as she doesn't believe Sagat makes new friends so easily. Meanwhile, Sagat has got most of the prisoners to attack Ryu and Ken, and a fight breaks out.



The noise attracts Guile's attention, and he sees the two men fighting off all the other prisoners. He finds out T. Hawk that their names are Ryu Hoshi and Ken Masters, two guys they caught in the warehouse last night. Guile has a plan and as AN troops stop the fighting, he tells T. Hawk to go and get them. Meanwhile, back in Bison's base, Charlie is still suffering. The scientists have started injecting the mutagen into his body, increasing his muscle mass and mutating him, much to Dhalsim's dismay.



Guile takes Ryu and Ken out to a place where some refugees have arrived. He tells them that these people have a chance, which cannot be said about those hostages Bison has. Ken says why has he taken them on this guilt trip, but he goes through their files. They con criminals and sell to criminals, and have been to many places in the world. But he thinks they aren't the same as Sagat and Bison, and thinks they are different. Is he right? Ryu says they are different, and wants to leave. But Guile tells him the only way they can leave is over his dead body.



The next morning, some of the prisoners are been taken out of the city to be put on trial. Sagat and Vega are two of these, although Sagat tells Guile that this isn't over -he owns this city! As they get onto the transport truck, they see Ryu and Ken get into an argument over why they came here, which turns into a fist fight. Some troops break them up, and they get put into the truck, but it was all a ruse -Ryu took some keys from one of the troops.



Sagat sees what they have done and convinces Ken to toss him the keys by saying he can help them escape from Shadaloo. Ken decides to trust him and a few seconds later, Vega and Ryu burst out of the truck and throw out the driver. They then get in and start to drive off. Some AN troops open fire, but they miss and the truck keeps going.



T. Hawk grabs onto the back of the truck, where he and Ken start punching each other. Eventually Ken grabs his gun and then pushes T. Hawk off, as the truck continues on. Guile appears and starts to open fire, but Ken fires back at him.



The two keep shooting, until Ken hits Guile and kills him! Sagat sees all of this and is pleased with Ken's actions. Chun-Li sees the truck going in a hurry and manages to throw...



... some kind of beeping device onto the side of it. The truck smashes down the entrance gate to the AN base and leaves, just as Guile is surrounded by AN troops, reporters and medics, but the latter are too late: Guile has died.

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