Sonic the Hedgehog is investigating reports of people going missing in a somewhat arid region of Mobius and quickly encounters a mysterious crackling light. The hedgehog tries to run, but is easily sucked into the light, and emerges in what appears to be a new Zone. Just as he questions where he is, he is greeted by the Zone's residents, who all wear the same yellow blazer, with numbered shirts underneath. Calling the Zone Perfection, they offer a specially tailored blazer to Sonic, but he refuses and swiftly leaves following a citizen's infuriated outburst. Sonic suddenly realises that he can't leave, thinking the missing Mobians are around, and is immediately attacked by a laser-shooting statue, which he quickly destroys. He demands the names of those in charge, but the citizens state that names are forbidden, referring to themselves by number, and addressing Sonic as Citizen Seven. The blue blur works out that the citizens are the missing people he's looking for, and have been brainwashed. Thinking that Citizen One is Dr Robotnik, but not getting the information he seeks, Sonic hurtles towards a dome structure where he is attacked by a balloon-like entity referred to as the Guardian. Upon spin-attacking the Guardian, it leaves behind a sticky residue which holds Sonic in place as a fist formed from the stone floor itself knocks Sonic out. Following the unseen voice of Citizen One, Citzens Two and Six bring the unconscious hedgehog inside the dome for brainwashing, which appears to have worked,as when Sonic awakens, he acknowledges his new identity as Citizen Seven and Perfection is his new home.
Upon exiting the dome, Citizen Two talks Sonic through their daily, strict routine: From six o'clock every day, they merely stand around all day watching grass grow and counting clouds. Sonic asks if he can meet Citizen One, having joined the fold. This is a forbidden question, and the Citizens realise that the brainwashing machine hasn't worked on Sonic. The hedgehog quickly strips off his uniform and makes a run for it, breaking through the stone bars trying to block his escape. He makes an attempt to convince the Citizens to leave with him, but they refuse, stating that they like Perfection, and the zone is surrounded by a forcefield preventing escape. Citizen One warns Sonic that the forcefield can repel his spin-attacks, but the blue blue retaliates with his new Blast Attack. With the field damaged, the zone becomes static imagery, and a computer-generated face appears before Sonic and the stunned villagers. Citizen One reveals himself to be a Robotnik-designed program who was abandoned when the dictator learned he only wanted to make a happy zone. When asked why he kidnapped and brainwashed the citizens, he merely states that he was lonely and wanted company. Sonic reasons that the program meant no harm, but advises him to create a zone people would willingly visit, thus having a lot more residents. Citizen One likes the idea, and creates a holographic theme park, where Sonic is later seen enjoying a chilli dog.
- The concept of Perfection and numbered Citizens is a reference to The Prisoner book and TV series.
- Sonic's Blast Attack originates from Sonic 3D: Flicky's Island. The only difference being that in the game, Sonic needs a gold shield to actually use it, whereas here he can use it without a shield. It seems to operate much like the homing attack, a staple of the games since Sonic Adventure.