The story opens 60 days previous, as M.Bison, surrounded by Vega, Sagat and Balrog, appears to murder Charlie Nash with a burst of psycho power to his face. Jumping to the present, Guile sits within Interpol's U.S. Headquarters in San Francisco. His thoughts reveal that 60 days ago his superiors asked him to accept Charlie as KIA, but that is something he cannot do. His assistant, Gibson comes in and tells Guile that Shadowloo seems usually interested in a man named Ryu - a name which Guile recognizes as belonging to the man who defeated Sagat in the first World Warriors tournament. However, before Gibson can show him Ryu's picture, Guile receives a phone call that Shadowloo agents are causing trouble in Chinatown, and he immediately leaves to look into it.
Meanwhile, Ryu arrives in San Francisco and goes to see Ken. He meets Ken's fiance, Eliza, and tells him about the murder of their Master.
Next time we see Ken, Ryu and Eliza they are dining in a restaurant in Chinatown. There, Ryu tells them that, from examining the scene, he could tell that a great battle took place between Master Gouken and his killer. He also describes the Japanese character that the killer left behind, the word "ten, sky or heaven" written on the wall in Gouken's blood. Ryu asks Ken if he will help him to avenge Gouken, but before he can respond, in walks Birdy with some henchthugs. Birdy shakes down the owner, slapping him around when he refuses to pay him "protection" money. Then Ryu grabs Birdy's arm mid-strike, and Birdy is about to unleash upon him when Guile suddenly bursts onto the scene with several armed Interpol agents backing him up. Birdy's henchthugs give up without a fight, but Birdy goes all out, attacking Guile with everything he's got. Guile dodges it all however, stating "I came here looking for Shadowloo agents... I'd be surprised if Bison even knew your name," before flash kicking Birdie into slumberland.
One of the henchthugs makes a break for it, elbowing an Interpol agent and charging through the kitchen and out the restaurants back exit, into an alley. Not the best move, as it turns out - Chun-Li is there, and with a series of lightning kicks she has the henchthug helpless, on the ground.
BACK UP STORY
Sagat faces Ryu in the final battle of the first World Warriors tournament. Just as Sagat leaps at Ryu to finish him off, Ryu calls upon the energies of the dark hadou, unleashing a vicious dragon punch that carves a deep groove through the flesh of Sagat's torso and hands Ryu the victory. As Ryu exits the battleground, Bison speaks to him from the shadows, telling him not to waste his great potential.