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The fisherman, Spyros, finds a coffin adrift in the sea discovering the baby Perseus and his dead mother, Danaë, inside. Spyros decides to raise Perseus as his own. Years later, Perseus and his family are fishing when they witness a group of soldiers from Argos destroying a massive statue of Zeus and declaring war on the gods. Following the fall of the statue Hades commands harpies to massacre the soldiers then rises from the ocean destroying the boat Perseus and his family are on. Perseus fails to save his family and passes out on driftwood. The surviving soldiers take him back to Argos.
During a feast for the returning soldiers King Cepheus and Queen Cassiopeia of Argos compare themselves and their daughter, Andromeda, to the gods. Hades appears and kills the remaining soldiers but Perseus is unaffected. Hades realizes Perseus is a demigod and reveals Zeus is his father. Hades kills the queen, and threatens that in 10 days, the Kraken will be released and if princess Andromeda is not sacrificed Argos will be destroyed.
The Argives see Perseus as an agent of the gods and imprison him but the king seeks his help saving his daughter. Io, who has been watching over Perseus his entire life, advises him to help the king. Perseus embarks to find the Stygian Witches with a group of soldiers, their leader Draco, and Io. Hades enlists Acrisius, a disfigured man who was married to Danaë when Zeus impregnated her with Perseus. When Acrisius planned to kill his wife and the new born Perseus, Zeus sent down a thunderbolt from Olympus, badly scarring and disfiguring Acrisius's entire body. Acrisius tells Hades: "There is no Acrisius; only Calibos." Hades imbues Calibos with superhuman powers to aid him in killing Perseus. Calibos attacks the group, when his hand is severed the blood hits the sand and creates giant scorpions. Perseus and the Argives manage to kill the first two scorpions, but are surrounded by three more. As they are about to attack, the scorpions are suddenly calmed by a group of Djinn, Sand-Demons with magical powers. There is initially mistrust between the two groups, until the chief heals Perseus and the two sides agree to cooperate.
At the rocky Garden of Stygia the three Stygian Witches tell Perseus that Medusa's head will be able to kill the Kraken, but he will die in the process. After leaving the witches Perseus talks to Zeus who offers to make Perseus a god but he refuses. Zeus understands that he can not change Perseus's mind and gives him a golden drachma. Persues uses the coin to bribe Charon (Ferrier of the dead) for passage into the Underworld and they enter Medusa's lair. Medusa turns all the remaining soldiers into stone, the Djinn destroys himself with his heart, weakening Medusa. Draco, who is injured by one of Medusa's arrows, rescues Perseus by skewering Medusa with a stone pillar from the ceiling. He allows himself to be turned to stone to give Perseus a clear shot at Medusa's head. Perseus kills Medusa, but as he exits the temple, Calibos stabs and kills Io. Perseus fights and kills Calibos, turning him back into Acrisius in human form. Perseus takes Pegasus back to Argos where the Kraken is destroying the city.
Hades confronts Zeus explaining that while the other Gods rely on the humans love and worship for power, over time he has become able to feed off their fear and hatred. The destruction of Argos will briefly give him enough power to overthrow all of the Olympians at once. Zeus attempts to banish Hades back to the underworld, but Hades already has enough power to defeat Zeus. Hades quickly overpowers him but an injured Zeus reveals that Perseus lives. Hades is enraged and leaves to oversee the Kraken's attack and ensure victory.
Hades commands his creatures to attack Perseus and steal Medusa's head. Perseus defeats the creatures and regains the head, as well as successfully turning the Kraken to stone before it consumes Andromeda. Hades appears once more and boasts that he cannot die because he is immortal; but Perseus throws his sword, charged together with a bolt of lightning from Zeus's which banishes him to the Underworld as the hope of the people after the Kraken's defeat allows Zeus to regain his strength. Perseus then saves Andromeda from drowning when the apparatus used to restrain her falls into the ocean, but refuses to become king of Argos.
Zeus appears and offers to make Perseus a god on Olympus, but he refuses. Zeus notes that Hades will return one day for revenge when mankind is in fear. Since Perseus is intent to stay on Earth, Zeus resurrects Io.
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