During the late 16th century, when the oppressed peasants of Germany revolted against the Holy Roman Empire, a spark of the Italian Wars finally gave them a fighting chance. In the midst of the German revolution, a champion of the people, Sir Fredrick Schtauffen, met and fell and love with a woman named Margaret. Just before Frederick left for a campaign, their love blossomed and resulted in the birth of the young Siegfried Schtauffen.
Siegfried grew up well, but was without fatherly influence. As Frederick's knighthood required that he be constantly out on missions, Siegfried was left majorly unsupervised, and soon became too much for Margaret to keep track of. The boy fell in with the wrong sort, socializing with a delinquent band of teenagers, who soon crowned Siegfried the leader of their mercenary group "Schwarzwind".
In a misguided act, Schwarzwind devised a plan to launch an assault on any knight they found fleeing the crusades, as they were likely to carry valuable possessions, and had already forfeited their pride by running away. However, this fool-proof plan turned into a nightmare, once Seigfried led an assault on a group of battle-worn soldiers too tired to retaliate.
After decapitating the commander of the knighthood, holding his head high in triumph, Siegfried looked up to his prize in horror. The head belonged to his own father, Sir Frederick. After bellowing screams of terror, Siegfried fled the scene and subconsciously tore away at his mind. As his insanity grew and grew, Siegfried was eventually able to convince himself that his father's murderer was someone other than himself. In retaliation, he sought vengeance.
In order to enact revenge, however, Siegfried knew he needed more power. His journey to find a suitable blade began, sending him across the world, until he finally learned of the legendary Soul Edge—a blade said to contain infinite power. Siegfried was led to a Spanish port, where he discovered the Soul Edge laying next to the deceased pirate, Cervantes de León.
Before Siegfried could claim Soul Edge for himself, the spirit of the blade reanimated Cervantes's body, and tested his strength. Although Siegfried's original sword, Faust, was destroyed in the process, he was able to prove himself worthy of the Soul Edge. The moment his hand rested on the hilt of the cursed sword, it latched itself onto him, and sent him screaming through a horrifying transformation. What emerged from the maelstrom of terror was the Azure Knight, Nightmare.
Over the course of the next three years, Nightmare wreaked havoc across the world in a blind rage, his only goal being to harvest souls for the cursed sword. As Nightmare amassed both power and servants, it appeared as though the world would be eternally drowned in despair. From the shadows, however, emerged the warriors Kilik and Xianghua, who faced Nightmare and revealed possession of the Soul Edge's bane, Soul caliber.
With Xianghua shattering the Soul Edge, Nightmare was sent spiraling through a void of darkness. Siegfried was able to reclaim himself, laying next to the fragments of Soul Edge, and was forced to come to terms with the reality of Frederick's death. Despite being seemingly freed of Soul Edge, however, it wouldn't be long before Siegfried realized that the Soul Edge was transforming him into Nightmare while he slept. Four years past, and Siegfried's reign as Nightmare resumed.
The Azure Knight soon came to realize that following his defeat at the hands of Xianghua and Kilik, fragments of Soul Edge were lost, and greatly weakened the sword. He spent his time searching the world desperately for the lost shards and, one by one, recovered them through any means necessary. For the restoration of the Soul Edge, Nightmare brought himself to an old chapel.
At this old chapel, the ruins of his forgotten Ostrheinsburg stronghold, he found a French nobleman awaiting him. Raphael Sorel, in search of the Soul Edge for himself, challenged Nightmare to a duel. The battle was legendary, and very bloody, but ultimately resulted in Raphael's defeat. As the nobleman lay prone to execution, a piece of Siegfried within Nightmare reached out and stopped Nightmare from finishing the fight, for just a brief moment. Taking advantage of this window, Raphael used the last of his strength for one final desperate strike, which pierced and shattered Soul Edge.
At last, with Soul Edge destroyed, Siegfried was able to regain control of himself again. Siegfried discarded his Azure armor, and once more took up position as a knight. This time, however, he would fight for the protection of the world, and for atonement of his sins. Knowing that Soul Edge would inevitably return once more, Siegfried decided that he would atone by putting an end to it once and for all.
His new quest to put an end to the cursed sword brought him to the Lost Cathedral, where Siegfried stood face-to-face against his greatest fear, Nightmare, reborn. Soul Edge itself had taken possession of Siegfried's discarded armor, and now acted as Nightmare without him. Siegfried challenged this new Nightmare to battle. In wake of the duel, Soul caliber appeared to Siegfried and beckoned to him. He picked up the spirit sword, and used it to clash against Soul Edge.
The resulting clash unleashed a maelstrom of power previously unseen by mankind, so powerful that it not only obliterated both Siegfried and Nightmare's bodies, but also destroyed the entire Lost Cathedral. Siegfried had died, though his story did not end. As the Soul caliber chose Siegfried to be its wielder, it also then used its power to reform his body and heal it. With the reformation of his body came a new set of armor, designed to match Soul caliber's form. Despite this, Siegfried knew that his return meant that Soul Edge would similarly come back, and so he prepared for one final battle.
In poetic similarity, Siegfried once again confronted the new Nightmare within a cathedral. Their duel, unlike the previous, was very short. However, it was just as climactic. Allowing for Soul caliber to briefly guide his body, Siegfried fought like a true warrior of legend. Soul Edge was pierced, and both it and Nightmare crumbled away at last.
Decades passed, and Siegfried could be nothing but thankful to the Soul caliber for not only restoring him, but also for giving him the opportunity to atone for what he had done. Although his fight was over, and his time as Soul caliber's wielder had long-since passed, Siegfried knew that it would forever be his duty to assist in the world's continuing peace. With Malfested creatures on the rise, Siegfried reformed Schwarzwind to counteract them.
Noticing that Soul caliber had taken the form of a simple one-handed blade, he knew that it was time for him to seek a new wielder for it. The task of finding Soul caliber's new champion was one he gave to his pupil, Z.W.E.I., who eventually brought to him a boy named Patroklos Alexander. After training him and making sure that Patroklos was worthy, Siegfried handed the Soul caliber, and the fate of the entire world, over to him.The Azure Knight, previously known as "Nightmare", the former wielder of Soul Edge who brought the world to its knees... In truth, he was first a knight named Siegfried. After killing his father by accident, Siegfried fell into a deep denial, which eventually twisted into a desire for revenge against his father's imaginary killer.
To enact his revenge, he needed power, which lead him to Soul Edge.
Turned into the sword's puppet, he became Nightmare, until losing in battle to Kilik. When the sword was shattered, Siegfried found himself awoken from the strange spell he had been under. Though freed from Soul Edge's grasp, he now had to face the fact that it was he who killed his father.
On the ground to his side lay the shattered remnants of Soul Edge...
Unable to cope with the weight of his crimes, Siegfried tried to abandon what was left of Soul Edge. However, the evil sword was so closely tied to his fate that it would not relinquish him from its grasp so easily. His cruel reign as Nightmare was not forgotten by any means, and, one after another, warriors began to appear before him, intent on taking their revenge.
Wandering aimlessly, Siegfried ended up crossing swords with a woman who declared that she must destroy Soul Edge. Though she claimed to be able to purify souls, the deep-rooted evil gnawing away at Siegfried was too strong to be cleansed. Nevertheless, their meeting would prove the necessary impetus for Siegfried to vow to face to his sins and atone for them.
Soul Edge could not be scratched, let alone broken by a normal weapon. To ensure the sword would never again fall into the hands of another, Siegfried decided it would need to be sealed away somewhere in total isolation. However, such a place was not easily found. Meanwhile, every time he struck down another challenger who sought revenge against Nightmare, Siegfried feared that he was in danger of slipping back under the sword's control.
Not all who stood in Siegfried's way were hell-bent on revenge. Some warped souls appeared drawn to the evil of Soul Edge. Though it wasn't Siegfried's goal to do away with these twisted individuals, neither were they the types with whom he could reason.
The evil in Soul Edge was growing stronger with each passing minute. One day, Siegfried heard an ethereal voice in his head speaking directly to him. Responding to Siegfried's desperation to save his own sanity, the spirit sword, Soul caliber, was calling out to him. But from the sounds of things, the blade was also in need of help itself...
The moment Siegfried gripped the evil sword's hilt, he was dragged into the mental realm. There, he was surrounded by images of the times he had fought as Nightmare and lost. Soul caliber appeared before him, and he watched as it was swallowed up by this strange dimension where it would be slowly devoured by evil.
Siegfried's battle with his nightmares raged on. No one knows of his sacrifice. However, if there was ever one who could prevent the resurrection of the cursed sword, it would be Siegfried—he who dashed Soul Edge's hopes of devouring Soul caliber.