*NOTE* - This is not a story, this is just me explaining what's happening.
(MINOR SPOILERS FOR PEOPLE WHO HAVE YET TO PLAY THIS GAME!
And hey, it's the sequel, you shouldn't be reading this anyway unless you played the first one.)
The games takes place right where we left off. Travis and Henry having their "Grand Duel". It shows the same exact cutscene, Travis giving his speech about how the only way out of this is to die. To reach paradise. There are no more heroes.
Henry wins. Travis is dead. Shinobu appears in the middle of the street with her katana. She sees the beheading of Travis. Blood everywhere. And that mysterious figure in the trenchcoat. She charges after him, shouting Travis' name. Her katana ready. She comes up from behind him, Henry paying no attention to her, rather his dead brother lying in a pool of blood in the middle of Santa Destroy's streets.
He sees Shinobu charging after him and readies his beam katana. There is a slow motion charge SWOOSH as the two assassins meet. Shinobu flies across the street skidding across the pavement. Her katana cut in half from the fire-hot beam katana.
She stands up and her and Henry start circling around each other. She tosses the chipped end of the katana in her hand at Henry. Stabbing him in the shoulder. She runs towards Travis' MK-III model and picks it up, releasing the beam. Henry shouts and pulls the katana out of his shoulder, his trench coat stained with blood.
Henry: Who the hell are you?
Shinobu: You are the one. You killed my father.