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This event can be accessed by going to the Neutral Garden. By going through a tunnel in the Garden, the player can access the Chao Stadium. In Chao Karate, the player has two options for gameplay: the Inter-league Game or the Tournament. The Tournament is the main Chao Karate game, in which the player's chosen Chao faces off against a computer-controlled Chao. Present only in the original Nintendo GameCube version of Sonic Adventure 2: Battle, there is also an Inter-league Game, which allows a Chao from the Memory Card in Slot A to battle a Chao from Memory Card Slot B.
There are four levels of game play in the Tournament mode (from lowest to highest): Beginner, Standard, Expert and Super. Super is unlocked after the player's selected Chao has completed Expert. Each level has five opponents, which the player's Chao must defeat in order to advance to the next battle. The player's Chao is required to defeat all five opponents of that level to clear it. One emblem is obtained by completing each level for the first time. When advancing into higher Tournament levels, the difficulty of the Chao opponents increase.
Karate is a battle between two Chao using kicks and punches, taking place on a square ring in a traditional East Asian garden area, complete with cherry blossom trees, traditional architecture, and two drummer Chao. Omochao serves as the referee for the match. A match has a time limit of 90 seconds, and there are three ways for a Chao to win: deplete the opponent's healthbar, knock the opponent out of the ring, or have more health than the opponent at the end of the time limit. A match can also end in a draw if both Chao have the same remaining amount of health at the end of the time limit.
Chao have Zeal (which is displayed on the two bars at the bottom of the screen) which represents the Chao's motivation to fight in the round. A Chao's Zeal gradually decreases over the course of the battle. Successfully attacking an opponent will raise a Chao's Zeal slightly, while getting attacked or its opponent dodging an attack will significantly lower its Zeal. When the Chao runs out of Zeal, it will become inactive until the player can cheers for their Chao by rapidly pressing the jump button which will replenish its Zeal. Once a Chao's Zeal is fully replenished or is attacked by its opponent, the Chao will resume fighting.
Like Chao Races, a Chao's stats dictate its performance in Chao Karate though they are used differently from races as follows:
Swim: The Chao's Defense stat; a higher value lowers the amount of damage a Chao receives.
Fly: The Chao's Stealth stat; a higher value increases the chance that the Chao will dodge its opponent's attacks.
Run: The Chao's Speed stat; a higher value makes a Chao attack more often.
Power: The Chao's Attack stat; a higher value allows the Chao to inflict more damage to the opponent and knock them further back. A Chao will only use simple punches or kicks to attack but when its Power stat reaches 400, they will perform spinning kicks and wind-up punches instead.
Stamina: The Chao's Health Bar amount.
Intelligence: The Chao's Zeal decreases at a lower rate, the higher the Intelligence value a Chao has.
Luck: Determines the rate that a Chao's Zeal-Bar can be restored at, and also makes a Chao lose less Zeal if it misses its opponent. When this stat is raised to certain values, it also changes the Chao's stance from sitting to be either standing or standing with its fists up. The exception for this are infant Chao who will always crawl regardless of their Luck stat.
Opponent #4: Eggie, a baby neutral Chao with a regular egg shell for a hat, or Dinner, a baby neutral Chao with a pan for a hat.
Opponent #5: Happy, a baby neutral Chao with all bunny parts and an apple for a hat.
Standard Tournament[]
Opponent #1: Lucky, a Swim-Type Dark Chao with a paper bag for a hat.
Opponent #2: Smokey, a Normal-Type neutral adult Chao with a pumpkin for a hat or Melody, a Fly-Type Hero Chao with strange bunny parts and wears a flower pot for a hat.
Opponent #3: Stormy, a Power-Type Hero Chao with a yellow and red striped wool hat.
Opponent #4: Spooky, a Run-Type neutral Chao with a blue-striped wool hat.
Opponent #5: Stinky, a Fly-Type Dark Chao with a gray-striped wool hat.
Expert Tournament[]
Opponent #1: Chappy, a Normal-Type Dark Chao with a cardboard box hat, or Magic, a hero run Chao.
Opponent #2: Ninja, a Fly-Type Dark Chao, or Skull, a Fly-Type neutral Chao with a skull hat.
Opponent #3: Tin, a Swim-Type Hero Chao with a tin bucket hat, or Woody, a Swim-Type neutral Chao with a tree stump for a hat.
Opponent #4: Angel, an aquamarine jewel Devil Chaos Chao.
Opponent #5: Flash, an onyx jewel Light Chaos Chao.
Trivia[]
Wacky is the only Chao to appear in two difficulties.
Sometimes, when fighting Stormy, Spooky or Crystal there is a glitch in which he kicks the player's Chao and, if possible, might end the match instantly.
Both Rainbow and Wacky don't have crying animations when defeated. Wacky stomps on the ground while Rainbow appears to be "crying."
It is impossible to have the same beginning animations as the opponents. For example; Happy's beginning animation is singing and facing the player.
For some reason, Crystal is the name of the Super Rank Angel Chaos Chao in the third round, and Angel is the name of the Super Rank Devil Chaos Chao in the fourth round.
Unlike in Chao Race, where an exit would simply exit the race, hitting exit in the pause menu while fighting in Chao Karate exits the Chao Garden altogether, forcing the player to have to return through Stage Select or by getting a Chao Key and finishing a level.