In this strange dimension, Bison has such tremendous power that Ryu and Ken's attacks do not affect him. The duo learns how to counter attack Bison, and begin to defeat him. However, Bison has a final trump card, the Psycho Crush Attack, which Ken and Ryu have no defense against. Desperate, Ken shoots his Hadou Shou Ryu which Bison can not counter.
The two Hadou forces collide and the fortress begins to collapse. The cyberchip dislodges from Ryu and he regains consciousness. Guile must now battle the cyberchip implanted Chun-Li. Shadolaw soldiers attempt to escape the island and everyone except Bison leave in hidden submarines. Ken and Ryu are transported to a strange dimension by Bison.
Bison orders Ryu to kill Ken using Hadou Ken. Guile enters the room and finds Nash's body. He tries to attack Bison, but the Psycho power proves too much for him. Fei Long explains that it is actually Dorai's enemy, Shadowlaw, who is controlling the syndicate.
Guile is overcome by the endless fighting power of Zangief. While searching for Ken, Nash comes upon Bison's room. He shoots at Bison, but the bullet stops in mid air. Nash is surprised by the demonstration of Psycho power. Bison declares that fighting is the true characteristic of humans.
Ryu, while under Bison's control, fiercly attacks Ken who hesitates to fight back. The senseless assaults begin to wound Ken and he realizes if he does nothing he will be killed. Cammy enters the hospital and battles Fei Long. Guile separates from Nash and is compelled to combat the powerful attacks of Zangief.
Bison (Vega in the subtitled version) is analyzing Ryu's power and tries to get him to release the Hadou Ken. The energy is polar to the "Psycho Power" which Bison (Vega in the subtitled version) can generate. Guile and Nash plan their escape by sneaking into the base and planting explosives at various locations. Ken senses something is wrong and begins to summon his "Ki".
Ryu, who was captured by Bison (Vega in the subtitled version), has a Cyber Chip embedded into his forehead. He loses his individuality and is now controlled by Bison (Vega in the subtitled version). After his escape, Ken searches the base to find Chun Li. Peering into a room, he sees Chun Li filled with murderous rage and completely unlike herself.
--When Ken regains consciousness, he realizes that he is restrained. Ken attempts to focus his "Ki" and control the "Hadou" within himself. He releases the "Sho Ryu Ken," a terrifying light which rages and twists toward the ceiling of the room holding him. Guile and Nash, who are staking out Bison's (Vega in the subtitled version) island from the sea, witness the light released by Ken. They put on their diving suits and head towards the island.
Ryu was defeated by Bison's psycho power and is now being held in his experiment facility. Sahdolaw's private island is where he is right now. Ryu is about to be turned into a mind slave by Bison with the help of a Shadolaw experimental microchip that entirely controls the person wearing it. Bison can make Ryu do anything, even make him kill himself. Ken is still trapped in some other part of the building and is struggling to get out. Meanwhile Guile and Nash are waiting until nightfall to sneak onto the island. Guile and Nash were hired by Ken's father to find Ken. Guile saw Zangief on the beach getting into a jeep on the beach behind Ken's hotel. They later found this jeep near a boat rental and figure out that the people on the jeep must have taken a boat out to a private island of the coast of something.
AKA: Special Orders to the Iron Men On a hotel balcony, Dorai is working while the assassin Cammy watches. Meanwhile, Ken's father asks Guile and Nash to help him rescue his son from Bison (Vega in subtitled version). Guile is surprised and amused at who he must rescue. Zangief, a member of Shadowlaw, approaches Ryu while he rests on the beach.
AKA: The Beautiful Assassin Chun Li grabs a camera light to use as a weapon against Bison (Vega in the subtitle). Unfazed by her attack, he knocks her unconscious. While holding Ken and Chun Li captive, Bison (Vega in the subtitle) calls Ken's father in America and demands a one billion dollar ransom for their return. Meanwhile, Cammy, the assassin, reserves a room next to Dorai to observe and plan her attack against him.
Ken and Vega (Balrog in the subtitle) continue their match in the death cage. Ken becomes unconscious from the loss of blood. He is laid out on a stretcher and taken to a strange room. Chun Li becomes suspicious as she observes the doctor administering a shot to Ken. Bison (Vega in the subtitle) appears and holds Ken and Chun Li captive. Chun Li tries to counter attack, but fails.
Bison (Vega in the subtitle) watches with the crowd as the death match between Ken and Vega (Balrog in the subtitle) goes on. Bison learns that the man Vega is battling against is Ken Masters, heir to the Masters family fortune, and one of the persons who destroyed Ashura. He also learns that Chun Li is the only daughter of Dorai, who works for Interpol.
Ken and Chun Li attend a martial arts match for the social elite. Vega (Balrog in the Subtitle version) appears and selects Ken as his opponent for the battle who accepts his offer. Vega’s (Balrog in the subtitle) incredible jumping ability allows him to attack from the air with his sharp and long metal clawed glove. The mysterious Bison (Vega in the subtitle) observes the match hidden in the audience.