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Celebrating Yugi's victory over Kaiba, Yugi, Taya, Joey, Tristan, and Yugi's grandfather are at The Game Shop, discussing it, and talking about the game. Yugi has recently beaten Joey again, whose weakness is trusting in power over skill. After going home, Yugi and his friends watch the final round of this week's Duel Monsters tournament on TV. The duel is between Weevil, a small nerdy kid who uses bug cards, and Rex, who uses dinosaur cards. Eventually, Weevil ends up winning, and gets an award from Maximillian Pegasus, the creator of Duel Monsters. Later, Yugi gets a box with a video and a glove inside. On the video is Maximillian Pegasus, who can somehow talk to Yugi. He explains that because he beat Kaiba, the only champion who made it through the official tournament without losing a match, he wants Yugi to compete in the next tournament. The glove is an official Dueling Glove, for competeing in an official tournament. Pegasus then shows Yugi the Millenium Eye, which he wears, and says that he will give to Yugi if he wins the tournament. This is how he is communicating over a video. Its power is tempting, so Yugi agrees, and again becomes Yu-Gi-Oh. To prove his worth, Yu-Gi-Oh challenges Pegasus to a match. It goes down to the wire, but in the end, Pegasus wins. Because Yu-Gi-Oh lost, Pegasus uses the powerful Millenium Eye to capture Yugi's grandfather's soul. Pegasus will give Yugi both his grandfather's soul and the Millenium Eye to Yugi if he comes and wins the tournament.
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