Fatal Fury 2: The New Battle

Meanwhile, Terry knows that in order for him to fight Krauser again he must regain his strength and speed and he does this by stopping off at a forest with Tony. Terry then performs his power wave move and given that it manages to destroy a good chunk of forest I think it's safe to say that Terry has fully recovered from his drink problem, much to Tony's delight.
 

At the hotel room, it turns out that Joe's attack did not harm Krauser, who returned the favour by beating him up quite badly and making a general mess of the place. With Joe now part of a wall, Krauser says that whilst he has made a shambles of his room, he was entertaining so he can stay here for as long as he likes. Krauser then walks away laughing whilst Joe apologises to Terry for not being able to avenge him before passing out.
 

Back at the forest, Terry and Tony have set up a small fire and as Tony sleeps, Terry thinks that whilst he has regained his power back, it is still not enough to defeat Krauser and he wonders what he must do to be able to defeat him. As he thinks about this however, the spirit of Lily appears before his eyes! He asks her what he must do but she says she doesn't know, but asks him if he must really fight Krauser.
 

Terry says that he has to fight him as his whole life is devoted to fighting, and that avenging his father's death did not change the fact that he still wanted to fight. Lily says that maybe if she had lived she would have been able to change Terry's life, but as he thinks of what she has just said another voice calls behind him: it's Tung! Tung tells Terry not to worry about the forthcoming battle but he must clear his mind and open his soul to the power of the Earth, and that will give him the knowledge he seeks to defeat Krauser. Tony then gets up and sees that Terry is still awake, but he tells him that he's also going to sleep now. As he does so, he thanks Lily's spirit.
 

The next day, the two continue their journey to Germany again but when Terry heads to a shop to get some food he finds out in a newspaper that Joe has been badly beaten up by someone, and he has had twenty four of his bones broken. Terry knows that only one man could have done that to Joe so they head to the hospital he is now at.
 

Mai is also in the room watching over Joe and after introducing herself to Terry she confirms that Joe has two dozen broken bones along with severe damage to his internal organs, and that the doctors have been saying that it's a miracle that he is even still alive. Joe wakes up and says that Terry must have regained his strength as he felt his energy when he came into the room, and tells him that Andy is waiting for him at the "usual place". Terry tells him to rest now as he and Tony leave to go and find Andy, leaving Mai to stay with Joe.
 

The "usual place" is actually South Town, so the two head back there and find Andy standing before his father's grave. As Terry finds him he tells him that it's time to go now and the three of them walk up to an area where they used to train together when they were much younger.
 

And the reason they have come here is that the brothers want to fight each other, the reason being that only one of them can fight Krauser and that they will need to be completely ruthless when doing so - and by fighting each other first that is the best way to reach that state. The fight starts and goes on for a while as it turns to night, and Andy eventually decides to end it with his Cho Reppa Dan, as Terry is thinking about Tung's words and how he thinks he understands what he was saying now.
 

It might not matter though as Andy successfully lands his move against his brother, and is going to finish him off with his Zan Ei Ken, but as Terry lands and recovers he strikes his fist into the ground and a large blast of blue energy shoots out and sends Andy spinning back defeated. As Terry checks on his brother, Andy asks him what that technique he just did was, to be told that it was something he just discovered thanks to him. Andy then tells him that he is the only one who can defeat Krauser.
 

At the castle, Krauser tells one of his servants that he had a dream last night where he saw his father and he was trying to tell him something, but he couldn't hear what he was trying to say. Krauser feels that today will be a unique day and tells his servant that he will be waiting in the grand hall and that if any guests should arrive, let them in. And sure enough, Terry and Tony are soon at the castle and are taken to where Krauser is waiting.
 

Terry tells Krauser that he was afraid of him before, but not any more and that he will defeat him no matter what. Krauser says that Terry has grown in power and that he is glad he let him live after their previous battle. The two start to fight and eventually go straight into using their sempu kyaku attacks.
 

Terry again takes several hits from Krauser's attack but as the moves end, and Krauser starts to tell Terry to put up more of a fight, part of his armour breaks off. Krauser then believes that he has finally founds someone worth of his full strength and starts to pulverise Terry with several punches and kicks, but his opponent doesn't give up and finally lands a strike on him by kicking him in the head.
 

This causes Krauser to actually bleed and he is happy about this because he has not felt the pain of combat for years now, and says that he will use his own special moves against Terry. He then charges up his power to create two energy ball projectiles he calls the Blitz ball and throws them at Terry, but Terry uses his burn knuckle attack just as they are about to hit him.
 

This saves Terry from death and Krauser congratulates him for being the first ever man to survive against his blitz ball attack. But he will now show him his ultimate move and after quietly thanking Terry for giving him a genuinely good fight he has been seeking for so long, he charges more power into his arms and unleashes a large projectile he calls the Kaiser wave.
 

As this projectile is about to hit, Terry uses the new attack he used against Andy -now called the power geyser -and reflects the Kaiser wave and the move engulfs Krauser, sending him flying into the large organ which destroys it. As Terry gets back up he hears something...
 

...and it turns out that Krauser is still alive, only now his chest armour has fallen away and he says that he's more excited than ever because he's never had to fight an opponent this strong before, and he resumes his attack which includes both fighters punching each other in the face quite hard.
 

The fight continues and after Terry punches his face, Krauser attempts to hit him back but Terry stops him from doing so by grabbing his fist, and with this advantage he pummels Krauser's stomach with several punches and he staggers back bleeding heavily.
 

Krauser realises that he has finally been defeated, but he has no regrets as it has been ten years since he has had to fight like this. He then walks back to a hole in the wall and says that he will not live the rest of his life in disgrace, and so bids farewell to Terry before letting himself fall out and hit the water, where he instantly sinks to the depths.
 

Terry isn't the only one who has witnessed Krauser's death though as outside the castle in a boat, Hopper is also watching and sees Krauser fall into the sea, and he smiles as he heads back to inform Geese.
 

Geese is the real winner here because he has had time to fully heal without anyone like Terry or Andy being the wiser and now to top it off the half-brother he hated so much is also gone. He calls Krauser a fool and then removes the bandage round his eye, showing that he has indeed fully healed and as Hopper watches, Geese just starts to laugh.
 

Terry takes Tony to a train station and tells him that he must say goodbye now, and then Tony's mother appears having gotten a ride to where they are thanks to Terry. Tony shouts to Terry as he turns his bike around that he will look after his mother and that he'll keep training himself so that one day, he will be as strong as he is...
 

"Ooooookayyy!"

Krauser does not die in the game, and was later bought back into the series in The King of Fighters '96 along with the Real Bout Fatal Fury games. He stays dead in the anime series though, and does not appear in the next one.

The power wave Terry unleashes has been totally made OTT (like most of the moves in this anime... but you can say that about most fighting game animes) and has the power to destroy large amounts of forest. In the games, however, it does not do this, and I have proof.

The English credits tell you to play the SEGA CD version of Fatal Fury Special. Don't do this because it's not very good (and extremely expensive to get for us Europeans).

Terry;s power geyser is blue in the anime, but it's actually yellow in the games. It also acts different in the games as it's like a much more powerful power wave, but in the games it's more like a column of energy that needs to be done close to the opponent for it to hurt them.

According to the Wikipedia page for this anime, in the Japanese version of the credits it shows various parts of the movie in the background whilst the credits role, but it also shows a couple of extra things no in the actual anime itself such as how Tony got onto the train and Hopper passing information to Joe (see the previous part for more on the latter.) I haven't got a version with the Japanese credits unfortunately.