In this OVA, Tobi narrated the origin of Konoha. At the beginning ninja fought for their own clans. The most powerful among them are two clans: the Senju led by Hashirama, and the Uchiha led by Madara. The Senju proposed a truce to the Uchiha which was accepted and led to the founding of the first hidden village organisation, Konoha. Afterwards, Madara felt insecure about his clan's prospect and tried to rally support from his clan to usurp the village's leadership, but rejected. As a result, he left the village. After awhile he returned with the Nine-Tails to challenge Hashirama at the place later known as the Valley of the End. Madara lost the battle and the Nine-Tails captured by Hashirama. In the epilogue, Tobi says that the battle was not lost, but only has just begun with the Fourth Shinobi World War. Source: https://naruto.fandom.com/wiki/Naruto_Shippūden:_Ultimate_Ninja_Storm_Generations_OVA_Hashirama_Senju_vs_Madara_Uchiha + More