After defeating Geese, Terry resumes his life of fighting and is forgotten by Southtown. Gangsters roam the streets and death is common place; the residents have little to hope for. With little reason to celebrate, the town has degenerated into a fighting pit for some of the world's most dangerous criminals. Terry, rugged and pissed off, battles to bring peace to a hopeless city. A young girl, Media, keeps him optimistic for a better future. His travels eventually lead him to the mastermind behind the madness: Geese. Brought back from the dead as a cyborg, he seeks revenge against the Bogard brothers. Joe bravely attempts to stop him, but is wounded by Geese's rocket punches.