Every August in this northern Japanese mainland town, the city puts on one of the most famous festivals the country has to offer. Nebuta is a week-long event in where people dress up in traditional costume, gather and watch giant floats covered with paper, then round out the celebration with a fireworks spectacular. In the case of CvS2, some of the fighters got a little too celebratory, jumped on top of one of the wooden platforms that hold the floats up, and beat each other silly.
You'll probably never notice it, but the entire background is slowly moving. The entire platform is travelling down a street. This reflects the parade portion of the Nebuta festival, wherein everyone who dresses up follows the floats as they pass by. Check out the giant crowd in the far background. In the near background, you'll see two familar faces in paper float form: E.Honda on the left, and Haohmaru on the right.
Nebuta - 2.5MB, 2:42, 128kbps MP3
Kyoshiro (in float form) - Samurai Showdown
Goro Daimen (banging drums) - King of Fighters '94