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The storyline is not very deep by any means, however, not much storyline isneeded for a game like this. The actual story is located on page 6 in your instruction booklet.
Several years ago in an island nation known as Horai, a powerful man named Tenro Horai found buried the Power of the Gods known as Ubusunagami Okinokai.
From this, he recovered great powers and set off with his followers who called themselves the "Divine Ones" and began to conquer other nations. They told people they were "The Chosen People" and they carried out their duties in "the name of peace." After a while, a group known as Tenkaku developed to challenge the Horai.
They fought and fought but lost battle after battle and were almost entirely wiped out. Only one man survived, and his name was Shinra. He set off again but was shot down and landed in a village known as Ikaruga. The inhabitants were sent into exile because of Horai's conquests and were sympathetic to his cause.
They nursed him back to health and gave him a ship they developed known as the Ikaruga.
Kagari, Shinra's new partner, was once a Horai assassin sent to kill Shinra. He was shot down but Shinra rescued him and saved his life. From then on, Kagari has fought with Shinra flying the Ginkei, modified by the Ikaruga people to be like the Ikaruga fighting plane, to help him defeat Horai and save the world.
At this point, you will get 500,000 points for each of your remaining lives. After that, the robot voice will say "Release the restrain device. Using the released power may result the possibility of destruction of the ship. You did your best. Was I helpful to you? I am deeply grateful to you." What it comes down to is that Shinra in his ship, the Ikaruga, fires all of his remaining energy at the Ubusunagami Okinokai to destroy it, but destroys his ship in the process. It is quite a tragic ending of Shinra giving his life to save the
world.
How they managed to fit such a diverse storyline into an arcade shooting game is amazing.