The Emperor's decision not to arrest 8311 was a grave mistake on his part. Now we in the midst of a war which is tearing us apart.
The Steel War was a massive conflict that began shortly after the Battle of Yavin between the Empire, Rebel Alliance, and the Steel Legion, a criminal organisation which, as a result of Palpatine's decision not to arrest Unit 8311, leader of the Legion. After Yavin, the Legion conquered Black Sun as the most powerful criminal body in the galaxy, and took over the underworld. For some reason, 8311 became more power-hungry and megalomanical, and after taking control of many planets with bribery and force, began all-out war on the galaxy.
As the Steel Legion grew more and more powerful in the years before the Battle of Yavin, and 8311's wealth increased, the Emperor began to take note of this crime syndicate. He ordered investigations concerning the Legion, and all intelligence seemed to indicate 8311 as leader of the Legion. Palpatine considered arresting 8311. His decision not to was a turning point in galactic history.
Soon, the Legion began a massive attack on Black Sun, eventually killing Prince Xizor and bringing Black Sun to its knees. After a short time, Black Sun was no more, and its assets were assimilated into the Legion. Now the most powerful criminal organisation in the galaxy, the Legion proceeded to crush and assimiliate the Zann Consortium, killing Tyber Zann in the process. The only remaining rival for the Legion, the Hutt Cartel, quickly made a peace deal with the Legion, but still remained on its guard.
Soon, the Battle of Yavin occured, and the Death Star was destroyed. In the turmoil that followed, the Empire suffered sabotage and terrorist attacks on its planets all over the galaxy. Survivors reported that Legion Defilers had been seen performing the acts. The Emperor took no notice.
Meanwhile, members of the Legion's upper echelons were noticing that 8311 was becoming increasingly power-hungry and sadistic. The reasons for this were unknown. Some suspected that 8311's old body was causing his mind to deterioate.
Shortly after, as the Rebellion defended its base on Yavin IV against a series of Imperial assaults, Legion intelligence discovered the existence of the Eclipse being built above Kuat. 8311 immediately began desiring the ship, which was having its construction accelerated and was therefore half complete. The Rebellion too learnt of the ship, and began planning a raid on the shipyards.
The Battle of KuatEdit
Quickly, the Legion assembled a large fleet and converged on Kuat. Just before it arrived, Legion Defilers infiltrated and sabotaged most of the Star destroyers protecting the shipyards. When the Legion fleet arrived, there was little to stop it. Quickly, the Imperial forces were overwhelmed and Legion troops took over the Eclipse. Very soon, Kuat was under Legion control, with the Kuati government being forced to agreed to Legion demands under threat of being destroyed with the Eclipses superlaser.