Several years have passed since the Wilamette incident, and Dead Rising 2 shifts the action from the everyday world of mid-West America to the glitz and glamour of Fortune City, America's latest and greatest entertainment playground. People flock to Fortune City from around the globe to escape from reality and the chance to win big and for some, this means competing in Terror is Reality.

Like millions of Americans, former national motocross champion Chuck Greene is gripped by the TV sensation that is Terror is Reality. Hosted by the flamboyant Tyrone King, Terror is Reality pits ordinary members of the public against an arena full of zombies with a simple challenge – kill more zombies than your opponents and stay alive with the winner collecting big money and the chance to come back and secure even greater prizes. So, what is it that has forced Chuck to come to Fortune City and risk his life in the modern day gladiatorial contest, is he trying to recapture the fame of his motocross days, does he have a reason to hate zombies, or is it simply the lure of big money?