He attempted to leave the China-based clan and return to his homeland, but leaving the Lin Kuei is the equivalent of treason and is punishable by death. He fled to his homeland in Japan. He returned and served various lords and generals using the skills he learned in the Lin Kuei.
He taught modified versions of Lin Kuei tactics and even revealed many of their secrets. Many of his skills and techniques were soon copied and learned throughout Japan, eventually evolving into the art of Ninjitsu. Unlike the Lin Kuei, the art of Ninjitsu involves the use of weapons and supernatural powers that can be mastered by any human with enough practice. This outraged the Lin Kuei back on mainland China. His practice in Japan eventually formed the Shirai Ryu clan, a tremendous rival to the Lin Kuei. His clan mocked the Lin Kuei by dressing in similar fashion but wearing yellow. This made Takeda a prime target for assassination. Takeda managed to elude death at the Lin Kuei's hand until his elder years, when his life came to an end through poison slipped into his tea.
He has never appeared in any Mortal Kombat video game, and his name is only mentioned in stories concerning the Lin Kuei and the creation of the Shirai Ryu, of which Scorpion later became a member.
Another character named Takeda has, however, appeared in the non-canon TV series Mortal Kombat Conquest and was possessed by Scorpion in order to get to Great Kung Lao through his love interest Geneviere "Jen" Reyland. Takeda worked for Baron Reyland and was his personal guard and assassin. He wore an all black garb similar to the ninja outfits from the first Mortal Kombat movie, and wore no mask. In the episode where he is possessed by Scorpion is also the episode that Geneviere "Jen" Reyland is killed, and Takeda is never seen again. The connection between this Takeda and the founder of the Shirai Ryu is unknown.