Olympus Coliseum
You're sent to the coliseum to complete your mission to eradicate the Heartless that threatens it. Immediately after you arrive, you're ambushed by a satyr who confuses you for one of the contestants in the latest tournament. His name is Phil, and he's well known throughout the land as the Trainer of Heroes. The contestant he's looking for is none other than Hercules, the reigning Champion and son of Zeus. Hercules is Phil's prize pupil, and was on the verge of missing the signups. He arrived just in time to register for the competition, and to meet you.
Even though you have your mission to focus on, you can't resist the desire to prove your strength in the arena. Phil is reluctant to let you, a mere child, participate in such dangerous battles and reasons that the tournament has more than enough entrants already. But Hercules sees something special in you and offers up his spot for your sake, believing that you can prove you're champion material.
You face off against powerful enemies in the tournament, showing off your amazing prowess and skills. None of the others can stand a chance against you, and you easily clear through the ranks to make it to the final round. Your opponent, Cloud, is different, and not just by his spiky blond hair or oversized sword wrapped in bandages. He doesn't appreciate your nonchalant decision to compete especially when you stand in the way of true competitors who have a reason to fight. Cloud is desperate to win, and he'll do whatever it takes to seize victory.
As it turns out, Cloud greatly underestimates your skills in battle. Each slash and jab you make forces him back and before long, you bring him to his knees. It seems as though you've claimed the championship title, but Cloud summons the last of his strength in a last ditch effort to defeat you. Before he can land the final blow, Hercules appears from out of nowhere and pushes him back, calling for a draw.
Hercules had been investigating something while everyone was preoccupied with the competition, and he discovered that it was all just a ruse created by Hades, Lord of the Dead, as a means to force the victor into the Underworld. It was his way to finally get rid of Hercules once and for all and now that his plan has been revealed, Hades no longer has a reason to hide and appears to claim his prize. He can't claim a victim because the tournament has been called off before the victor can be decided. It infuriates Hades to learn that his plan has been foiled yet again, but that doesn't mean he still loses. When Cloud volunteers to go with Hades into the Underworld, he is more than happy to oblige and whisks the spiky-haired warrior away.
None of you can stand to leave Cloud alone in Hades's clutches. Hercules insists that he will take care of it and that you should stay with Phil, but you refuse to listen and run off into the land of the dead to find Cloud on your own. What you fail to realize is that this is all part of Hades's true scheme. He knew that Hercules would undoubtedly venture into the Underworld in order to rescue Cloud, and the second he stepped foot in it, the Underworld would begin to sap his godly strength and make him easy picking.
You and Hercules find Cloud in the deepest part of the Underworld as he watches a black feather fall. He tells you that he had no intention of staying, and only agreed to go with Hades in order to find someone. Now that he knows that someone is not there, he is more than ready to leave with you. However, the damage had already been done. Hercules had been in the Underworld for too long and now that he's lost his power, Hades could capture him easily. With him out of the way, Hades can return to the coliseum to wreak havoc.
Cloud returns to the coliseum to stall Hades as you rescue Herc. When the three of you are reunited, you're able to make short work of Hades and send him running back into the Underworld.
