On July 16, 1988, a catastrophic nuclear explosion virtually completely destroys Tokyo. Additionally, the Third World War starts at this time.
2019 marks the rebuilding of Tokyo as Neo-Tokyo after 31 years. The corrupt government strives to control the gangs and terrorists in the grimy metropolis with military power. Life on the streets is characterized by riots and vicious gang conflict. Two teenage pals named Tetsuo and Kaneda reside in Neo-Tokyo. They are not particularly interested in education, preferring instead to use their motorcycle gang to make the streets dangerous at night and engage in vicious street battles with other gangs. Tetsuo meets a strange boy one evening as they are fighting with the Clowns, another gang. His visage may be that of an old man, but his body is that of a youngster. The military arrives shortly after the meeting, captures Tetsuo, and uses him in future trials. Tetsuo now possesses powerful psychic abilities that he can soon no longer control as a result of the experimentation. Kaneda gradually loses control of his abilities as he works to release Tetsuo.
