Who knew how many had died for the Emperor, nobody knew the truth, that or they chose to ignore it. The War between the Halteese Republic and the Kingdom of Dalkia had been waged for decades, now at their weak points the Grandal Empire decided to move against both of them.

They had amassed huge armies in order to wipe out any resistance. But it was wrong, the Empire was trying to overtake land for wealth and power, not for peace, and many knew it. As a result many decided to rebel against the Empire, deciding instead to fight for peace rather than die for one man's greed. But the Emperor did not like this, he called them unloyal, murderers, those who were the lowest of any class, even lower than common criminals. He sent his battalions of Grandal warriors to crush the rebellion, and they did, seemingly effortlessly.

But unbeknownst to all three sides, a new power was rising. Nightmare, the bringer of doom, murderer of the innocent, stalker of souls, had become two. Siegfried had broken free from Inferno's grasp, no longer did he bow to SoulEdge, he had broken free from its horrible grip. He sealed the blade of SoulEdge using SoulCalibur, the opposite to SoulEdge's dark power. Inferno had, however, escaped into the wreckage of Siegfried's previous armor. With the help of an unknown soul, Nightmare was reborn.

He continued his reign of darkness once again, his once disbanded army now back under his command. Yet, he knew he must regain his former body, he must take back SoulEdge from Siegfried. But Siegfried had disappeared, almost seeming to vanish. Nightmare sent out legions of scouts, but they found nothing. He was beginning to grow angry, he had moved against both the Grandal and Halteese at the same time, and now it seemed both countries would retaliate as allies. He needed his former power immediately, without it he was not complete.

His warriors were strong, Nightmare's aura seemed to give his ever growing army, constant power. The Lizardmen came back, their beloved Shrine now in ruins at the hands of Astaroth, they were once leaderless, now serving Nightmare once more. Golems, created like the lizardmen but without souls they to, came back. Other monsters joined the army, werewolves, goblins, ogres, trolls, gargoyles, even the great Skytyrants had returned, Nightmare's army was rebuilding. He retook Ostreinburgh Castle as his stronghold, there they would regroup, building their once vast army back to its former glory.