Being the series introduction the main characters are introduced, and Yugi is seen playing Duel Monsters with Jounouchi (English Name: Joey). While dueling, Kaiba overhears that Yugi's grandfather has a "super-rare" card in his possession. Kaiba asks himself if it was the card he had been searching for. After school, Yugi and the gang decide to go to Yugi's house at the Game Shop.

Yugi, Anzu (e. Tea), Jounouchi, and Hiroto (e. Tristan) all look in wonder around the shop. While talking, the topic eventually focuses onto Duel Monsters. Yugi asks Sugoroku (Yugi's g-pa) if he can show his friends Sugoroku's ultra-rare card. Sugoroku reluctantly agrees and gives them a view of his Blue Eyes White Dragon. It is also revealed that only 4 Blue Eyes White Dragons were ever created.

Kaiba takes this moment to barge into the shop with a suitcase full of cards. Jounouchi asks him to a duel and Kaiba refuses, due to him being a giant compared to Jounouchi (dueling-wise). Kaiba demands a trade to Sugoroku for his Blue Eyes White Dragon, but Sugoroku refuses, because it was a gift from a long time friend. The next day, Kaiba forces Sugoroku into a duel, each putting their best card on the line.

Sugoroku ends up losing, and when Yugi and the gang find out, they rush to KaibaCorp headquarters. Kaiba gloats over his win and tears up Sugoroku's Blue Eyes White Dragon, leaving three in the world and all belonging to Seto Kaiba. Yugi transforms into Yami Yugi, and Yugi duels Kaiba. The duel starts off quickly with Yugi annihilating Kaiba's Cyclops (1200/1000, Eng name: Hitotsu-me Giant) with his Winged Dragon (1400/1000). Kaiba counters very fast, annihilating Yugi's monsters one by one with Sagi: The Dark Clown. Yugi counters with Gaia: The Dark Knight of the Gale (2300/2100).

This counter is short-lived however, as Kaiba reveals his Blue Eyes White Dragons, one by one. When Kaiba gets to two Blue Eyes onto the field, Yugi stalls with the Sealing Swords of Light (e. Swords of Revealing Light) keeping Kaiba at bay for three turns. Kaiba gets his Judgeman (2200 atk) onto the field, but Yugi has his Black Magician (e. Dark Magician, 2500/2100) waiting to annihilate it.

Kaiba gets his third Blue Eyes onto the field as the Sealing Swords of Light fade, Yugi draws the 5th and final piece of Exodia, obliterating Kaiba's life points and winning the duel.

Episode 002: The Gauntlet is Thrown

At Yugi's school, Jounouchi is shown facing Anzu in a duel. Jounouchi is clueless about how to play, and Anzu's Breath of God (e. Breath of Light) card wipes his monster out. Being anxious to be a good duelist, Jounouchi asks Yugi for his opinion on Jounouchi's deck. Yugi, being fully honest, says the deck stinks because it is composed of all monster cards, and no magic or trap cards.

Jounouchi asks Sugoroku to train him in Duel Monsters, which Sugoroku accepts. Later in the month or so, Yugi and the gang are watching the Japanese national Duel Monsters championships. It happens to be Dinosaur Ryuzaki (e. Rex Raptor) versus Insector Haga (e. Weevil Underwood). Haga wins with a Basic Insect / Armor with Firepower combo.

After the duel, Yugi recieves a package from Industrial Illusions. Once Yugi pops in the video tape contained within the package, Pegasus appears on the screen. Pegasus freezes everyone except Yugi with his Millenium Eye and challenges Yugi to duel. Yami Yugi appears and the duel commences. Pegasus "predicts" Yugi's first card, the Demon Dragon (e. Koumouri Dragon) with his Millenium Eye. Yugi soon realizes that Pegasus' Millenium Eye can see what cards are in his hand. Yugi then starts playing off his deck.

Yugi makes a comeback with the Black Magician (e. Dark Magician) and Pegasus shows him the power of the No-Faced Illusionist, by taking control of the Black Magician and using him against Yugi. As the timer runs down, Yugi almost beats Pegasus with the Demon Summon (e. Summoned Skull), but the timer reaches zero. With this, Pegasus takes Sugoroku's soul, so Yugi is forced to go to the Duelist Kingdom.

Episode 003: Jouney To Duelist Kingdome