In 2455 AD, swordmaster Hiro Miyamoto is visited by a man named Dr. Toshiro Ebihara, a descendant of Inshiro who is suffering from a plague and about to die. Toshiro tells Hiro that Kage Mishima, the ruler of the planet, took over the world by stealing the Daikatana and using it to alter history. He stole the cure to a viral plague in 2030 and uses the cure to control the world's population. Mikiko Ebihara, Toshiro's daughter, has been captured when trying to steal back the Daikatana, and Hiro must rescue her and fix history.
Hiro storms the Mishima's headquarters where he rescues Mikiko as well as Superfly Johnson, the Mishima's head of security who rebelled when he grew sick of the Mishima's brutal totalitarian practices. Mikiko and Superfly join Hiro in his quest and steal the Daikatana. The Mishima encounters the trio as the trio steal the sword, wielding a second Daikatana. The Mishima sends the trio back in time to Ancient Greece. Hiro and Mikiko defeat Medusa, recharging the Daikatana as it absorbs Medusa's power. The three time jump once more, only to encounter the Mishima again and be sent through time to the Dark Ages, stranded as the Daikatana has run out of energy.
The group finds a sorcerer named Musilde who offers to recharge the Daikatana if Hiro, Superfly, and Mikiko can save his village from the black plague. To do this, the group must defeat the necromancer Nharre, reassemble the Purifier, a magical sword, and use it to restore King Gharroth's sanity so that he may use the sword to put an end to the plague. When King Gharroth recharges the Daikatana, Hiro and his allies time jump again, finally ending up in 2030, where San Francisco has fallen to gangs and martial law has been declared by the military and the Mishima.
The trio fights their way through a naval base where the Mishima is working on weapons. The ghost of Usagi enters Hiro's body and gives him full control over the Daikatana. With Usagi's knowledge and skills with the sword, Hiro slays the Mishima. One of the Daikatana disappears, as its timeline no longer exists.
Mikiko steals the remaining Daikatana and kills Superfly, revealing that the feudal Ebihara clan was just as evil as the Mishimas. She announces her intentions to use the Daikatana to restore the honor of her ancient clan and take over the world. Hiro defeats and kills Mikiko, then uses the Daikatana to fix history once and for all. The Daikatana is never found in 2455, the viral plague is cured in 2030, the Mishima never take over the world, and Hiro exiles himself to a forgotten corner of the space-time continuum, safeguarding the Daikatana to ensure that it never falls into the hands of evil.
Development
John Romero's initial design for the game, completed in March 1997, called for a huge amount of content: 24 levels split into 4 distinct time periods, 26 weapons, and 64 monsters, with the weapons and monsters divided amongst the time periods so that each period would have its own unique set. Despite this, Romero believed that development of the game, which began in April 1997, could be completed in seven months, just in time to be released for Christmas 1997. The game was to license the existing Quake game engine. At id Software, the content portion of Quake had taken a nine-person team six months. Romero had eight artists, and calculated that he could finish in seven. The schedule was called "patently ludicrous" by John Carmack. Romero did not have an established, experienced team to rely on, as Ion Storm was still forming as a company, constantly adding new employees. Many were talented amateurs, hired on the basis of level designs they had created.
Ion Storm showed Daikatana at E3 in June 1997. The game engine was still running in a software mode, looking outdated and unimpressive. At the same time, id Software was debuting their Quake II game engine, featuring hardware acceleration and innovative visuals. Romero realized that they were falling behind technologically. The Christmas 1997 deadline was quietly dropped, and the new plan was to keep creating the content for the game, and switch to the Quake II engine as soon as it was ready. The game was rescheduled for a March 1998 release.
Daikatana's title is written in Japanese kanji and literally means "big sword"; however, the characters' usual reading is in fact "daitō". (See etymology of katana.) The name comes from an item in a Dungeons & Dragons campaign played by the original members of id Software, which Romero co-founded. The character Hiro Miyamoto was named in honor of Romero's idol, Shigeru Miyamoto.