A few days later, Yugi and his friends were watching the final round of the Regional Duel Monsters Championship. The duel was between Rex raptor and Weevil Underwood. Joey told Yugi that he wished he could participate in that tournament, but Yugi told him that there still was a lot to learn. At this time, Yugi's grandpa gave Yugi a parcel that had arrived in the mail. The parcel was from Industrial Illusions, the company that made Duel Monster cards. Yugi wondered why they had sent him the parcel and Joey said that it might have something to do with beating Seto Kaiba. Yugi put the parcel aside and continued watching the match.
As the match continues, Joey thinks Rex will win, since Rex has some pretty powerful monsters, but Yugi said that Weevil was known for using magic and trap cards, so each duelist had an equal chance. At this time, Rex played Two-Headed King Rex. Weevil summoned Basic Insect and set one card. Rex attacked, but Weevil activated him Vortex card, trapping Rex's dinosaur. Weevil then powered up his Basic Insect with Insect Armor With Firepower and destroyed Rex's dinosaur, winning the duel. At this time, Pegasus, the creator of Duel Monsters appeared and handed Weevil his trophy. Pegasus then told everyone that he was hosting a tournament on his own island. Pegasus then left in his limo and one of his men informed him that his packet had been delivered.
Meanwhile, Yugi opened his packet. he found a strange glove, two starchips, and a video tape. Yugi put the video tape inside his VCR and befgan to watch with his friends. Pegasus appeared and told Yugi that he was interested in him, after his defeat of Seto Kaiba. Pegasus offered a 15 minute duel between them. Yugi was confused, but he accepted. His Millenium Puzzle then transformed him to Yami. Suddenly all his friends and his grandpa froze and the room became dark. Pegasus appeared and told Yugi that he was in the shadow realm. Pegasus explained that Duel Monsters was a copy of an ancient Egyptian game, that was played for power in ancient times.
Yugi began the duel by summoning Koumori Dragon. Pegasus used Dragon Capture Jar. Pegasus summoned Dragon Piper and used its effect to take control of Koumori Dragon. Yugi countered with Silver Fang, but Silver Fang was destroyed. Pegasus then told Yugi that he was ready for his Armored Zombie. Yugi didn't know how Pegasus was reading his mind so he summoned the top monster on his deck, the Dark Magician. Dark Magician easily crushed Koumori Dragon. Pegasus then summoned Illusionist Faceless Mage and activated the Eye of Illusion. Yugi attacked, but the attack was blocked. Yugi then summoned Celtic Guardian and attacked, but his own Dark Magician was destroyed(Yugi LP: 400). Yugi then drew Summoned Skull and was about to destroy Illusionist Faceless Mage when the fifteen minute time period ended. Pegasus invited Yugi to duel him again, but Yugi didn;t accept. Pegasus then used his Millenium Eye and took away Yugi's grandpa's soul. Pegasus told Yugi that if he wanted his grandpa's soul back, Yugi would have to beat him. Yugi left the shadow realm only to find his friends awake, but his grandpa in a coma.