As a famous and reputed crimelord of darkness, Krauser decided to amuse himself. Once he hears of South Town's reputation, he sends a letter to Geese. Though it was written in a polite manner, it was really a threat for his older half-brother to engage in a contest with him. However, he never received a written reply since he heard Geese died soon after. He was beaten by a man named Terry Bogard in the King of Fighters tournament. Intrigued by the man's name, Krauser sent an imposter to defame Geese's company and came in person to South Town (retconned in Fatal Fury Special).
Staging his own King of Fighters tournament, he injures several veteran fighters from the previous event (retconned in Fatal Fury Special). He also hires three fighters to serve him who are Billy Kane, Axel Hawk, and Laurence Blood. Eventually, he fights Terry himself. After a fierce battle, Krauser is defeated and remains missing from the fighting scene.
The King of Fighters
Nothing was heard of from Krauser until The King of Fighters '96 tournament, when Krauser joined forces with Geese and Mr. Big to create the Boss Team. Although Geese used both him and Mr. Big as pawns in his attempt to nab an ancient power called Orochi, Krauser only cared about self-improvement. After learning of his faults at the hands of Terry, Krauser vowed only to fight stronger opponents in order to restore the strength and prestige he once possessed. For now, Krauser wants only to improve himself first.