Returning to Harry's Club, Scott finally meets Tokai, the man behind the takeover of Tokyo and death of Isao Sato. And Harry Tanner appears to be working for him. Tokai locks Scott in the cellar of the club and heads to the Dojo to take the Katana Giri for himself.
Scott later catches up with Tokai at a fortress where Tokai is hiding out. Tokai manages to escape but Scott gets the Katana Giri back.
Scott visits Otori back at his dojo where he finds that Mariko had been poisoned in the battle at the dojo. Otori wants revenge.
Together, Scott and Otori head to Tokai's residence. Otori wants to kill Tokai and Scott needs to rescue Miyu Sato. During the battle, Otori is also poisoned.
Eventually Scott defeats Tokai and rescues Miyu. Tokai tells him of an antidote that can cure Scott's poisoned friends. Suddenly, Otori shows up to kill Tokai. That's when Scott has to make a choice: Kill Tokai and never find the antidote, or let him live allowing them to get the antidote.
) The player can allow Otori to kill Tokai, which will result in both Otori and Mariko dying from the poison.
) The player can fight Otori and defend Tokai, but if the fight is lost, Otori will kill Tokai also resulting in the deaths of Otori and Mariko.
) The player fights Otori and wins, allowing all three characters to live, with Tokai as a prisoner.