The King of Fighters '98 takes a break from the Orochi plot line and instead is presented as a "Dream Match" game where the KOF roster duke it out for the top spot. Most of the characters from the past four years return, thus providing the player with a very large roster containing 38 characters. Many of the characters have been altered in an attempt to make the game balanced regardless of the player's choice of fighter. Rugal Bernstein is provided as a non-secret character for the first time in KOF '98, and several regular characters have hidden "alternate" versions that may also be used in-game.

The King of Fighters '98 takes a break from the Orochi plot line and instead is presented as a "Dream Match" game where the KOF roster duke it out for the top spot. Most of the characters from the past four years return, thus providing the player with a very large roster containing 38 characters. Many of the characters have been altered in an attempt to make the game balanced regardless of the player's choice of fighter. Rugal Bernstein is provided as a non-secret character for the first time in KOF '98, and several regular characters have hidden "alternate" versions that may also be used in-game.