The King of Fighters: Maximum Impact 2 was released in North America as The King of Fighters 2006, and is a sequel to The King of Fighters: Maximum Impact. MI2 brings you back to the team fighting universe of the KOF with the added spin of using a polygonal engine. All of the characters from the original MI return, and are joined by 4 newcomers and 14 secret guest stars, totaling a whopping 38 characters, each with a unique story mode and dozens of possible costumes. The story this time deals with the appearance of the evil Jivatma in South Town, where all the heroes converge for their own personal reasons. Gameplay changes include the ability to sidestep and super cancel several moves; additional backgrounds and bonus features can be unlocked after beating the story mode, as well as completing the mission mode and time attack challenges

Many contended that the illegal fighting tournament in Southtown was sponsored by the gangland syndicate "Mephistopheles" to achieve the annihilation of their rivals and procure some operating capital. After its "King," Duke, suffered defeat at the hands of Alba Meira in the finals, he and his organization vanished from Southtown. Meanwhile, the media, firmly under Duke's control, released a fusillade of sensational exposés based on information from confidential sources regarding their former oppressors. In spite of this new torrent of "information," almost no one knew that an even larger entity had been pulling Mephistopheles' puppet strings. The truth behind the Addes organization name was only known throughout the dark recesses of the underworld. No one really had an inkling as to what this organization truly entailed. Now, another of Addes was to reveal a new battle royale. Invitations in white envelopes were sent to the world's mightiest, who will find the call to the battle by Addes irresistible. As stated in Alba Meira's private novel by Akihiko Ureshino on the official KOF Maximum Impact 2 site (which serves as an official follow up to the story of KOF Maximum Impact 2), Alba was in fact the one who defeated Jivatma and Luise. Soiree was kidnapped as a result of that and Alba has not seen him since then.