First of all "Psychic Wars" is probably a misleading title. It should be called "Demon Wars." There is nothing psychic going on in the movie, but there certainly are plenty of demons stirring up trouble. Much of the animation is excellent, except for a few parts of the movie where it looks like they simply went with the rough draft of those scenes to get the thing finished. The battle and fight scenes were okay, but some seemed unfinished. Given the short length of the movie (50 minutes) it may have been edited to reduce violence. My major problem was the thin plot line. It had the potential to be a good sci-fi story, but the dialog was poorly written which made a choppy tale.
The story is about an ancient race of demons attempting to return to power after their destruction 5,000 years ago. A doctor who helps a dying elderly female patient inherits her powers as the new guardian against the resurrection of the demon race. He then seems to accidentally travel back in time 5,000 years to witness the demons slaughtering and feeding on humans. He vows to destroy the demon race and nearly succeeds. But some of the demons manage to travel to the future and are waiting for him when he returns to his own time.
As I said, this story could have been made into a much stronger movie with better dialog and finishing those last few parts of sloppy animation (or replacing the cut scenes, if that was indeed the case here). I recommend renting this DVD before deciding to purchase it.