While visiting their master Gouken, Ryu and Ken are challenged by the evil Akuma who claims to have stolen Gouken's chi and will do the same to them. Akuma gives Ryu and Ken time to train so they might stand a chance against him. During the course of their sparring sessions however, Ken injures Ryu's arm, which leaves Ryu in a bad state. Akuma uses that to easily defeat Ryu, only to get defeated himself by the power of Ken.
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