In the year of 2039, after World Wars destroy much of the civilization as we know it, territories are no longer run by governments, but by corporations; the mightiest of which is the Mishima Zaibatsu. In order to placate the seething masses of this dystopia, Mishima sponsors Tekken, a tournament in which fighters battle until only one is left standing.

High school student Ling Xiaoyu is recruited by Anna Williams of G Corporation to transfer to Kyoto University and gather information on a student named Shin Kamiya. Meanwhile, Jin Kazama, the current head of the Mishima Zaibatsu, sends Alisa Bosconovitch to the university for the same mission. Though they do not know each other's true motives, Xiaoyu and Alisa become close friends. However, their friendship is put to the test when Shin is captured by an unknown assailant.