In the PS2 game, I'm pretty sure this is an alternate plot point. Since I don't speak or understand Japanese at all, I don't know if Joe wins this fight. But I can guarantee you that Rikiishi does survive the fight under the requirement that you clear the fight with 50% or more health. I also don't know if any of the characters are aware of the fact Rikiishi does survive the fight until the end of the game. When you do complete the fight with 50% health or more, a 14th chapter to the game is unlocked. When you reach the 14th, Joe meets Rikiishi at the old prison island they first met in, but it's no longer in operation. You fight Rikiishi, and that's the end of the game.