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Geese Howard is a man with ambition. After already having proven himself to be a master of martial arts, he decided to study Hakkyoseiken under Tung Fu Rue. Geese discovered that the secrets of Hakkyoseiken is recorded in three sacred scrolls, one of which was in Tung Fu Rue's possession. When Tung decided to pass the secrets of Hakkyoseiken to another senior student by the name of Jeff Bogard, Geese killed Jeff before his two sons' eyes. Then Geese challenged Tung himself and defeated him, taking his sacred scroll afterwards.
Ten years later Geese is in firm control of South Town, and as a way of eliminating any opponents he holds annual King of Fighters tournaments in which strong fighters would fight each other for the right to challenge Geese himself. This year's tournament has three new entries, Terry Bogard and his brother Andy Bogard are looking for revenge for their father's killing, with Muay Thai kickboxer Joe Higashi along for the ride.
Players can select Terry, Andy, or Joe in Fatal Fury, and can choose which of the game's first four opponents they want to challenge first. The game has a unique two-line fighting system; fights can happen on the background plane as well as the foreground plane. Characters can transition from the foreground to the background and back at any time, and can even execute an attack while doing so.
Fatal Fury has a pretty unique feature that is revealed when a second player joins in during a one-player game. The two players actually first join in a cooperative mode to defeat the CPU controlled character first, then square off against each other to determine who advances in the story mode. This two player cooperative idea in fighting games was first tried in Fatal Fury, and would not resurface until the hidden cooperative mode in Capcom's Street Fighter Alpha. ~ Kyle Knight, All Game Guide