Katsuo discovers that the stranger in black and his organization have a specific reason for challenging so many powerful martial artists. It turns out that there was a group of ten of the world's most powerful martial artists, including Besmir and Katsuo's father, were part of a secretive group tasked with protecting a crystal orb that was a sacred treasure from the Forbidden City in China. This orb was found in the 1920s, and lore indicated that it could provide one single wish to its possessor. This orb was trusted by the UN to this international group of fighting champions to be used in case of global emergency, and its care is constantly passed between them to make it more difficult to track down. This is the reason why the stranger in black is going from champion to champion, chasing after the orb so that he can use the one wish to obtain great power. It is also explained that the reason the stranger in black attacked Katsuo's father so many years ago and disappeared was simply to strike fear into the hearts of the people of the world, so that one day, when he ruled all, he would go permanently unchallenged.
Furthermore, it turns out that the orb lay in the possession of Katsuo's father the entire time. The stranger in black finally reaches him and ultimately overwhelms him, obtaining the orb. However, as he is about to use it, Katsuo arrives and duels him. Katsuo wins out in the duel, but the stranger in black cheats and uses a small flash bang device to blind him temporarily and knock him down. The stranger prepares to finish Katsuo off, but Katsuo's father clubs him over the head with the orb from behind, knocking him unconscious. The stranger in black is apprehended, and since the orb's defenders have become injured and exhausted, the task of watching over it is assigned to Katsuo and his loyal band of ten friends.
Some things are also revealed that took place after the events of Journey mode. Jason and Amelia ended up dating; Larousse returned to France and became famous by answering questions from the media about what happened over the course of Katsuo's journey; finally, Katsuo and his cousin Mei Lin returned to Japan, and evetually took over their own family studio, where they lived out their lives in peace, training other young fighters from all over the world.