When Obaba of the Black Spider Clan was defeated, the funds that she accumulated were used by Genshin to construct the flying fortress, Daedalus. A very large structure, the Daedalus is powered by an oversized, flaming Armadillo. Aboard the ship are Black Spider Ninja armed to the teeth with modern military equipment including guns and rocket launchers, accompanied by both Genshin and Elizabet, the latter of which loses her temper when Ryu begins to foil her plans.
Ryu lands on the ship after being dropped from Sonia's helicopter, which crashes shortly after when being shot at by the fortress, which is armed to the teeth with missile silo's and gun turrets. Along with the standard enemies inside, the fortress is also home to mechanized fiends which look to tear Ryu apart. After fighting Genshin the second time, Ryu and Sonia escape on a motorcycle as the fortress falls apart over an icy area outside of Russia. With Sonia missing after the crash landing, Ryu turns around to see the core of the fortress, the Armadillo, barreling towards him. The two fight and the last remnant of the Daedalus meets its end.