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The heir apparent to the largest conglomerate in the United States, 12-year-old Ken Masters was shipped off to Japan by his father to learn discipline under his good friend, Gouken. Although hesitant at first, Ken eventually warmed up to his new environment, getting along especially well with his fellow student, Ryu. Ken's warm and passionate nature contrasts his best friend, and the two love to test one another. He just can't say no to a challenge from Ryu.
Now settled into a comfortable life in America with his expecting wife, Ken is reluctant to enter the new fighting tournament. It is only after Ryu issues a personal challenge that he enters the tournament, ready to show his good friend that he still has his fighting spirit.