Yugi and Joey are doing ok in the duel until the paradox brothers summon the might Gate Guardian, which has the strength of 3 monsters.
Yugi and Joey call upon the Summoned Skull and the Red Eyes Black Dragon but the Gate Guardian is very strong. And they still do not know which way to take even if they do win.
Yugi and Joey have won their duel and they got out of the cave alright. Pegasus traps Mokuba's soul inside a card right in front of Seto Kaiba. Pegasus says Kaiba can challenge him only after Kaiba defeats Yugi in a duel. Kaiba stops Yugi in front of Pegasus's castle and the duel begins.
Kaiba puts together his three Blue Eyes White Dragons and creates the Blue Eyes Ultimate Dragon. He also places a Defense Paralysis card on the field so Yugi can't defend.
Yugi finds a way to defeat the Blue Eyes Ultimate Dragon, but before he can attack, Kaiba stand on the edge of a precipice and says that if Yugi attacks his monster the resulting energy waves might cause him to lose his balance and he might fall. Yami Yugi starts to attack anyway but the real Yugi, encouraged by Tea, stops him. Kaiba goes into the castle after he wins.
Yugi is crushed not only by the fact that Kaiba took his star chips, but by the fact that he almost couldn't control his alter ego. Mai Valentine comes along and offers Yugi some star chips, because he got hers back awhile ago from Panic. Yugi doesn't say anything at all so Tea challenges Mai to a duel for the star chips. Mai is way out of Tea's league, but Tea manages to destroy one of Mai's monsters. Mai then says that her last card is a throwaway (which it wasn't) and forfeits the match. Tea gives Yugi the star chips and Yugi comes out of the state of shock.
Yugi, Mai, Joey, Tristan, Tea and Bakura go into Pegasus's castle, where Kaiba and Pegasus are preparing to duel. Bandit Keith is also there to watch the match. Things aren't looking good for Kaiba, Pegasus can use his millenium eye to see what Kaiba is thinking, so none of Kaiba's moves are a surprise. Pegasus also uses powerful Duel cards that have never been released.
Pegasus manages to get ahold of one of Kaiba's Blue Eyes. He puts it in toon world where it becomes the Blue Eyes Toon Dragon. Kaiba figures Pegasus is cheating somehow, so he now has all his cards face down so what he picks is as much of a surprise to him as it is to Pegasus. Kaiba destroys Pegasus's Blue Eyes Toon Dragon and Pegasus gets mad. After that any luck Kaiba previously had was gone and Pegasus finished him off and sealed his soul in a card. Now Yugi is also dueling for Kaiba.