Shinpachi encounters Tosshi, who's more powerful otaku club has stolen most of his fanclub members . As he struggles to get sympathy from Gintoki and Kagura about his plight, it is revealed that Tsuu has decided to promote an official fanclub competition where Tosshi has decided to participate.
Shimura Shinpachi and Terakado Tsuu's Imperial Guards are seen exiting an Otsu concert. The Guards excitedly discuss the pros and cons of the concert, but Shinpachi seems a little down. When the guards ask what's wrong, Shinpachi reveals he is upset because even though today was the day of a concert, the most important day for members of the Imperial Guards, only four of them showed up. Shinpachi then forces Sergeant to recite Regulation No. 82: "You must go to an Otsu-chan concert even if it's the day of your parents' funeral. Open parentheses."
It is revealed that the other members quit the club. Shinpachi suspects them of becoming fans of another idol, and swears to barge into all of their homes, and make them do push-ups while reciting the club creed. Takaya Hachibei attempts to stop him.
The other club members appear, sporting, and reveal they didn't quit because they love another idol, but because they couldn't stand Shinpachi's methods. Hijikata Toushirou, in the form of Toushi, then steps forward and tells Shinpachi that he is leading the new wave of fanclubs, called the Tsusengumi.
The narration, by Gintoki Sakata, then takes the tone of telling a war story, possibly parodying Japan's warring states period. As Tsu Terakado is now the top idol, many of her fan clubs wish to become official. It seemed that the strongest group of otaku were led by their "general," Shimura Shinpachi, as they had supported Otsu even when she was still singing on the street. They were bound by 99 clauses, and "dominated every other faction in performance quality, energy, obnoxiousness, and lack of women." This group was undefeated until one man appeared, the brilliant general, Toushi. Instead of fighting, he understood the heart of an otaku, and enticed one after another to join from different factions, soon creating the largest force. Instead of focusing on one idol, Toushi's faction covered anime, manga, games, 2D and 3D media. His "soft-line" methods were refreshing compared to the "hard-line" Otsu fans. As such, Terakado Tsuu's Imperial Guards were the first to fall.
Gintoki attempts to end the episode there, but Shinpachi stops him. Shinpachi is in despair, lamenting that a half-assed idol otaku like them can't compete with a charismatic otaku like Toushi. Takaya attempts to cheer Shinpachi up by declaring that the Imperial Guards hasn't died yet, and says that they should join up with the other fanclubs that haven't been absorbed and fight against Toushi.
Gintoki, tired of Shinpachi's and Takaya's story, attempts to end the series altogether, instead of the episode. He asks Shinpachi why becoming an official fan club is important, when all it get you is a couple of biscuits. Shinpachi explains that it's a great honor, because of instead of supporting Otsu one-sidedly, it means that she is asking them to cheer for her. He compares becoming an official fan club to becoming the palace army led by the Shogun, and those who aren't chosen are like rebels.
Toushi then comes into Odd Jobs. Gintoki complains that he shouldn't walk into other people's houses without their permission. Toushi tells Gintoki, calling him "Sakata-shi" to turn on the TV. Terakado Tsu is being interviewed. She reveals she didn't want to assign ranks to her precious fans, but since her fans were getting into fights as a result, she would make an official fan club. The announcer for the program reveals that there would be a battle to decide who would be Otsu's official fan club.
The final battle of the otaku is about to begin
- Ketsuno Crystel (minor)
- Terakado Tsuu
- Takaya Hachibei
- Shimura Shinpachi
- Toushi (Hijikata Toushirou)
- Sakata Gintoki
- Announcer 3 アナウンサー3
- Toushi: (to Shinpachi ) "You should be the ones to feel ashamed. Fan Clubs of hard-line idols are relics of the past, from the age of Chinko Matsuda and Bakina Nakamori. Your methods are old-fashioned. Nobody will follow you. The Tsu Terakado Fan Club has fallen. From now on, yes...I, I shall lead the new wave...The Tsusengumi!"
- Narrator/Gintoki: "Our story is set during the Warring Tsu Terakado Fan Clubs Period. Tsu Terakado had overcome scandal and achieved the position of top idol. Countless numbers of fan clubs engaged in a furious battle for dominance. Men fell in battle as they strived for supreme hegemony, the title of official fan club."
- Kagura: "Who cares about idols and whatever? Go do it by yourself. It's a waste of time, you piece of trash."
- Gintoki: "I don't really understand official fan clubs or the like. What are you people trying to do? What? Official? So you when the war and become official. Then what do you have? Do you get to go out with Otsu-chan? Do you get to kiss Otsu-chan? Do you get to [censored] or [censored] or [censored]? You don't. Official gets you a couple of biscuits and that's that."
- During their depiction as generals; Shinpachi and Hijikata are portrayed wearing distinctive armor associated with Takeda Shingen and Uesugi Kenshin, respectively. Takeda Shingen and Uesugi Kenshin were both pre-eminent daimyō during the Sengoku period ; particularly remembered for their lifelong rivalry with one another.