TV news stations across the world report on the crisis in Shadaloo, where the civil war there may be reaching the turning point after seven months of fighting. Chun-Li reports that AN forces are consolidating their hold on Shadaloo city, after a night of skirmishes. But the soldiers aren't celebrating just yet, as they know that defeating the ragtag militia is one thing -defeating the heavily armed forces of general M. Bison is quite another.

From his hidden fortress, Bison is watching Chun-Li's report. She says that the allied forces know that they are dealing with a power-mad dictator, whose drug money has equipped his army with high-tech weaponry. It has only been 24 hours since Bison seized 63 allied nations relief workers from a village north of where she is. Bison has issued a ransom for their release: 20 billion dollars. In the fortress, the hostages are thrown into a pit, whilst three captured AN soldiers are brought before Bison.

Bison tells one of them that they came from across the world to fight him, so now's his chance. The first guy tries to punch him, but Bison avoids it and then snaps his neck, killing him. Bison calls him pathetic.

He kills the second guy, then resumes watching Chun-li's news report. She tries to speak to colonel Guile, but he doesn't want to speak to her or the rest of the world. However he says he does want to talk to someone: Bison.

Bison has Dee Jay hack into the TV signal. From Chun-Li's news truck, Honda sees something up. He asks Balrog if he can believe this, and Balrog, who is Chun-Li's camera man, says he can -he's shooting it!

Guile calls Cammy over and whispers for her to trace the signal, as Bison takes over the airwaves. He greets Guile, and asks him why he addresses a fellow warrior with such disrespect. Guile asks him if he really thinks he's a warrior, asking how many doctors and nurses he's killed this weak, and how many children he's orphaned. Bison tells him he'll choke on those words.

Cammy kicks Honda out of his truck, and starts trying to trace the signal. This gets noticed by Dee Jay, who reports it to Bison. Bison tells Guile he must think he's so clever, and tells him to think about this. He starts a 72 hour countdown.

He says that if his 20 billion dollars aren't delivered by then, the hostages will die, and the world will hold Guile responsible. Guile calls out to the hostages, and says that if they can hear him, he and his forces are coming. He then calls out to someone called Charlie, telling him to hang on. Bison checks the dog tag of the last soldier hostage he has, and reads it out: Carlos Blanka. He realizes that he must be Guile's friend Charlie, and tells some of his troops to have him taken to the laboratory.

Cammy comes back and says they couldn't trace it, as Bison broke off too soon. Guile tells Chun-Li that for a minute, she was almost useful. As he and T. Hawk walk off, Chun-Li tells Cammy that Guile doesn't like women. Cammy says that's not the case, he just doesn't like journalists, and assures her it's an equal opportunity dislike.

Later on, somewhere else in Shadaloo city, Ken and Ryu enter an underground arena, which has a caged ring in it. They are taken to Sagat, who they are making a deal with. Ryu thinks this is quite a party, especially when a 7pm curfew is meant to be in effect. Ken asks Sagat if he has the 100,000 dollars.

Ken is shown a briefcase, which has the money inside it. But before he is allowed to have it, Sagat asks if they have the weapons. Ken says the weapons are hidden, and Ryu says they'll stay hidden until they get outside with the money. He pulls out a phone and says they'll call Sagat on this, and tell him where the guns are.

They start to walk out, and Ryu tells Sagat he'll need this phone. But Sagat reveals he already knows that the weapons are on a pier behind a brewery. His men have already unloaded the truck, and have brought the weapons here! Some of his men grab some guns, and start firing at Ryu and Ken... only for the ammunition to be a bunch of tennis balls.

Sagat laughs and says these guns are toys, but he likes his games live, and in living color. He has some of his men attack, but Ryu and Ken start beating them up.

They kick a couple of guys through a wall, but guys with real guns then show up. Sagat thinks this is interesting, as they aren't all talk after all.

Back at Bison's fortress, Bison and Zangief go to the lab. Bison asks doctor Dhalsim how his research is going, and Dhalsim says the same: warped, corrupted, twisted to serve perversion instead of peace. Bison says that after he has crushed his enemies, they'll see about getting Dhalsim's work published. He wants to see the patient, so Dhalsim leads him over to a chamber.

Inside the chamber is Charlie, who is strapped to a chair, and has goggles over his head that feed him a never-ending cycle of violent images. Bison is pleased, and thinks Dhalsim has a perfect soldier. He watches Charlie writhing on a monitor, and asks if that's a reaction to the program. Dhalsim shows Bison what images he is receiving, and Bison thinks this is merely educational software, so why does Charlie find it disturbing? Dhalsim tells him it's because Charlie isn't psychotic, unlike Bison.

Bison lifts Dhalsim up, telling him he takes risks. He tells him not to presume so much of his good nature, then throws him back down. Once Charlie's brain has become a killing machine, his loyal scientists will start on his body. Several scientists then walk into the room, bringing some plasma and mutagens in with them.

Sagat announces that the next fight will be Ryu against his champion, Vega. Vega walks into the ring, surrounded by many fans. Sagat tells for the bets to start at 100 American dollars. Ken tells Ryu he's sorry for talking him into all this, and Ryu says he's sorry he listened.

As Ken is taken out of the cage, Vega walks in. Ken tells Sagat that Vega is a popular guy, and Sagat says he's the greatest caged fighter since Iron Fist. Ken asks what happened to Iron Fist, and Sagat reveals he retired, and became him. Vega removes his mask and does a back flip, much to the delight of the crowd.

Ryu has his shirt removed, and is then given a sword. He starts swinging it around, and then throws it so it hits a post behind Vega.

The crowd starts chanting no weapons, so Vega decides not to take his mask or claw. Ken asks why Sagat is making him watch this, and Sagat says it's for research -Ken is fighting next. The fight is about to start, but then a vehicle smashes through a wall.

Ryu and Vega are forced to flee from the arena, as Guile appears and tells everyone that they'll all under arrest.

The next morning, an AN staff meeting starts. Guile asks if there's any new business, and Sawada says his commando team is ready, but they need to know if the assault will be by land, sea or air. Guile asks Cammy for an update, and she says they were able to make Bison break radio silence. It wasn't enough to pinpoint the signal, but they believe his base is somewhere in the river delta region. Just then a guy serving the tea jumps up onto the table, brandishing a knife.

He goes for Guile, but Guile kicks him over and throws him to the floor. Guile asks if there's any other new business. Cammy checks on the assassin, and sees he has a tattoo on his chest, the Shadaloo tongue.

Guile says this could be the break they need. If Sagat runs guns to Bison, then he must know where Bison is hiding. He thinks they should infiltrate someone into Sagat's gang. At the AN prison, Ryu and Ken are surrounded by some of Sagat's guys, and start fighting them.

Sagat sends Vega in, as AN troops start raising the alarm. Guile, Cammy and T. Hawk see what the commotion is, and see Ryu and Ken fighting a bunch of prisoners.

Guile asks who they are, and T. Hawk says they're Ken Masters and Ryu Hoshi, a couple of low-rank operators they took in with last night's sweep. As AN troops break up the prisoners, Guile tells T. Hawk to get Ryu and Ken brought over to him.

Back in the lab, Dhalsim watches as the other scientists start their work, which includes increasing Charlie's muscle mass. He goes to look at what the other scientists are doing, but a guard moves him away from them. He sees on the monitor that Charlie's muscle mass has increased to 50%.

Meanwhile, new refugees arrive at the AN base. Guile takes Ryu and Ken to see them, and Guile says the people here have a chance. But those hostages Bison is holding have less than that. Ken asks if this is a guilt trip, but Guile calls it a wake up call. He reads their files and thinks they try justifying their con games by thinking they're stealing from criminals. He asks them if they're the same as Sagat and Bison, or are they different? As Ryu and Ken look at all the injured people behind them, Ryu says they're different and asks if they can leave. Guile says the only way the two of them are leaving is over his dead body.

Later on, a bunch of prisoners, who include, Sagat, Vega, Ryu and Ken, are being loaded onto a truck to be moved out of the base. Sagat tells Guile this isn't over, as he owns this city! Guile calls himself the repo man, and tells Sagat he's out of business. Ryu yells at Ken for getting him into the mess, and the two start fighting. T. Hawk and some other troops break them up.

They are put into the truck, but Ryu reveals he managed to get the keys. As they unlock their handcuffs, Sagat asks for the keys to be thrown over to him. Ken tells him to go to hell, but Sagat tells them to forget their past -he can help them escape the city. Ken throws the keys over, and as a soldier closes the door, Ryu kicks it open. He and Vega then rush out.

They get to the front of the truck, and Vega tosses out the driver. The trucks rolls out, as AN soldiers start firing at it. T. Hawk jumps onto the back of the truck, but Ken manages to take his gun, and hit him off.

As the truck heads towards an exit, Guile leaps out and starts firing. Ken starts firing back at him, and shoots him twice!

As Guile falls, the truck continues on. Chun-Li throws a tracking device onto it, and the truck then exits the base.

Sagat has seen what Ken did, as the other prisoners start celebrating. Cammy gets to Guile and calls out for the medics, but as they arrive, they find that Guile is dead, and put a sheet over him.

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