Observing Eye

The Observing Eye (傍観の眼) is the third episode of BlazBlue: Alter Memory. It marks the transition from the events of BlazBlue: Calamity Trigger to the events of BlazBlue: Continuum Shift.

Short summary
After Rachel uses the Tsukuyomi Unit to stop Takemikazuchi's attack, Ragna has an unexpected encounter with Hazama, who effortlessly beats Ragna. Soon after, Ragna, Noel and Rachel go their separate ways. No more than a minute later, a vigilante, Carl Clover, battles Ragna, after a stalemate, Ragna is sent tumbling down to Lost Town. After being taken in by Taokaka, his wounds are soon seen to by Litchi Faye Ling. The episode ends as Hazama starts to put his plans into motion as soon as Relius Clover arrives in Kagutsuchi.

Long summary
As Highlander: Takemikazuchi fires at Kagutsuchi, Rachel uses the Tsukuyomi Unit to block its attack. As the attack is blocked, the shot ricochets off into the nearby mountains, causing massive explosions. Now with its shot fired; Rachel remarks at how Takemikazuchi will need to go back to sleep for another four years before it can fire once more. Rather suddenly, Rachel felt Hazama's presence and rushes back to where she left Ragna and Noel. Meanwhile, Hazama makes his presence known in the Sheol Gate, startling both Ragna and Noel, Ragna recognises the man and, after several flashbacks of the attack on the church, begins to remember who Hazama really is. Looking upon Hazama with deep hatred, Ragna calls out to him, revealing Hazama's true identity as one of the Six Heroes; Yūki Terumi. Hazama tells Noel to "see through him" which she did; by doing so, Noel has unwittingly become Hazama's Observer. Now that he is being observed, Hazama steps out of line and directly intervenes with the timeline by revealing his real identity to Ragna and Noel. Outraged, Ragna begins to blindly fight Terumi despite his weak condition from being defeated by Nu-13 only mere minutes earlier. However, after Ragna's quick and sound defeat by Terumi, Rachel appears and teleports Ragna and Noel out of the Sheol Gate.

Around the same time; in Orient Town, Linhua is helping out the doctor, Litchi Faye Ling with gathering some supplies she needs, however, this is cut short as they both hear an explosion, they immediately leave the clinic and join a growing crowd as they look upon the aftermath of Takemikazuchi's ricocheted blast on the mountainside.

Afterward, Ragna and Noel teleport to safety, with Rachel subsequently departing. Ragna rudely tells Noel to leave him alone and go somewhere else, and the feeling-sore Noel complies. Suddenly, Ragna encounters a young vigilante named Carl Clover, who seeks Ragna's Blue Grimoire, and who sics his Event Weapon, Machine God: Nirvana, whom he refers to as his older sister, Ada. Ragna defeats Carl, but sustained serious injuries during the battle. He falls into Lost Town, where he is found by Makoto Nanaya. Later Taokaka appears, and Makoto leaves Ragna in her care to search for a doctor who can treat his injuries.

Meanwhile, at Kagutsuchi Port, Hazama is talking to Relius Clover by the phone about his plan to re-awake Noel as Murakumo Unit, and about a person that he can use for it. Later Jin is seen unconscious, recovering.

In Lost Town, Ragna had a dream about the burning church, Jin injuring him, Terumi cutting his right arm, and Saya. He wakes up and meets the little Kakas, and Litchi, who treated his injuries.

At the Port Bay, Jin continues his search for Ragna in a weaken condition.

In the end Hazama calls Tsubaki over to his office and assign her to find Jin Kisaragi and Noel Vermillion and kill them.

Locations

 * 13th Hierarchical City "Kagutsuchi"
 * Sheol Gate
 * Orient Town
 * Kagutsuchi Port
 * Lost Town

Weapons

 * Highlander: Takemikazuchi
 * Large sword of Ragna the Bloodedge
 * Snake Pair: Ouroboros
 * Machine God: Nirvana
 * Ice Sword: Yukianesa

Fights

 * Ragna the Bloodedge versus Carl Clover

Trivia

 * When Hazama shows his true personality, he removes his hat as his hair is spiked upwards. However, his tie is not removed like in the game.
 * Ragna becomes rude to Noel as a contrast to his story mode in BlazBlue: Continuum Shift.
 * Rachel teleporting Noel and Ragna outside the Controlling Organization branch is inconsistent with the story told in the short story Trigger Shift, where she leaves them inside the branch instead.
 * In BlazBlue: Continuum Shift, Nirvana injures Ragna causing him to fall into Lost Town, in the anime, Ragna destroys the platform they were on causing him to fall into Lost town.
 * When Jin escapes the airship in his weak state, he is seen in his medical clothes while being covered with his jolting sapphire vest.
 * In BlazBlue: Calamity Trigger, Rachel uses the Tsukuyomi Unit at night.