Pegasus J. Crawford (Maximillion Pegasus in the dub) is the first major enemy that Dark Yuugi faces. Pegasus is the rich, young, and enigmatic CEO of Industrial Illusions, the company responsible for creating the Duel Monsters (formerly known as Magic and Wizards) game.
At approximately 17 years old, Pegasus lost the love of his life, Cyndia/Cynthia (known as Cecelia in the dub), to a fatal disease. Pegasus was so stricken by her death that he vowed to find a way to bring her back, and so he traveled all over the world in search of ways to bring the dead back to life. He finally ended up in Egypt, and heard tales about ancient Egyptian necromancy (the power to control the dead).
Pegasus ran into Shaadii, and he followed him into the catacombs. Throughout the series, Shaadii has always been a mysterious but important character, and this is no exception. Shaadii later explains to Pegasus that he would not have been able to get as far as he did, were he not a "Chosen One," or one meant to hold one of the Millennium Items.
Shaadii tells Pegasus that they will find out if he is truly one of the chosen ones, and that the Millennium Eye itself will test him; if he is worthy, he will see times and places outside of his own. But if he is undeserving, the Eye will punish him with madness and insanity.
At the time, Shaadii was one of the few protectors of the Millennium Items, all of which had been guarded by various Tombkeeper families for centuries. Though it is assumed that the family of Malik Ishtar and Isis Ishtar had been guarding the Millennium Torque (Millennium Necklace) and the Millennium Rod, Shaadii is known to be the guardian of at least these three Millennium Items: the Millennium Scales, the Millennium Key and the Millennium Eye.
Many years prior to Pegasus's meeting with Shaadii, Sugoroku Mutou found the tomb of the Pharaoh and removed the pieces of the Millennium Puzzle from it. It is not known why that item was the only one unguarded by a Tombkeeper member, though it is reasonable to assume that because it was the Pharaoh's personal item, it should be left in his tomb, which was well-guarded enough as it was, filled with traps and games.
The only other Millennium Item left unaccounted for was the Millennium Ring, the item which Bakura is famous for possessing. Like the puzzle, this item was not explicitly guarded by a Tombkeeper, and instead, Ryou Bakura explains to Yuugi that his father, an archaeologist, found it in a market in Egypt and purchased it for his son.
However, if Shaadii knew about any of this, he did not enlighten Pegasus. Pegasus's left eye was replaced with the Millennium Eye, and when the young man returned to his homeland of the United States, he began painting again (when Cyndia died, Pegasus found himself unable to paint anymore) color portraits of the creatures he saw depicted on the walls of the catacombs in Egypt. These paintings became the base imagery for what would eventually become the Duel Monsters trading card game.
It is not known whether the powers of the Millennium Eye caused Pegasus to go insane, or if he wasn't already depressed and/or mentally disturbed. The first season of Yu-Gi-Oh! Duel Monsters shows Pegasus possessing a wealth of knowledge about the Millennium Items and their past, but not very much about the Pharaoh or his High Priests, the original guardians of the Items. Pegasus is also seen taking part in some very strange rituals, many of them appearing ancient.
Pegasus uses the power of his Millennium Eye to look into the mind/soul of any person he chooses, which makes him a cheater at his own game. However, it is later revealed in the manga series that the powers of the Millennium Eye enable the holder to remove someone's soul from their body, and trap it within a stone tablet (or presumably, any object of their choice, since Pegasus used this ability to trap the souls of Sugoroku Mutou, Seto Kaiba, and Mokuba Kaiba in blank Duel Monsters cards).
Pegasus had his home on a secluded island off the coast of California, naming it Duelist Kingdom. His castle was the site of the Duelist Kingdom semifinals and championship, and it has been nicknamed Pegasus Castle. When Yuugi and the others first enter the castle, they observe a portrait of Shaadii (whom they've already met) and a beautiful woman who remains unknown until the latter half of the season (Cyndia).
In the anime, Yuugi defeats Pegasus and forces the Duel Monsters creator to return the souls he stole. Pegasus retreats deep within his castle, and is caught unawares by Dark Bakura, who steals Pegasus' Millennium Eye and leaves Pegasus grievously injured. The last Yuugi and his friends see of Pegasus is one of his assistants, Croquet, taking the Duel Monsters creator out of the tower on his back.
In the manga, we see Dark Bakura gouge out Pegasus' eye, and is presumably murdered at the same time, but we don't know for sure. In the Yu-Gi-Oh R! spinoff manga, Pegasus was thought to have committed suicide; in the last arc of the manga, Dark Bakura presents Yuugi with the Millennium Eye, and Yuugi realizes that something must have happened to Pegasus for Bakura to to be in possession of it.
Yu-Gi-Oh! Wiki version
(Yu- Gi-Oh!) Pegasus first met Cecelia at a party thrown by his businessman father in Las Vegas 14 years ago. She died when they were 17. It was unclear whether or not they married in the original Japanese anime, and no mention of their marriage was mentioned in the manga. In the anime, Pegasus searched the world looking for anything that could possibly revive the dead. His quest led him to Egypt, where their beliefs of an afterlife intrigued him. There he met Shadi, the ghost of a guardian of the Millennium Items, who gouged Pegasus's left eye out and replaced it with the Millennium Eye after Pegasus passed its test. In the original manga, Pegasus travels to Egypt to try to inspire his lost interest in painting after Cecilia dies. He never tried to revive his wife, but rather attempts to defeat Yugi and take control of KaibaCorp so that he could use the Solid Vision to conjure a lifelike image of her. Pegasus soon learned of the ancient Shadow Games that were played in ancient Egypt and became obsessed with their powers. He created a new game in the United States, basing a card game on the duels of ancient times. Combining the magic of the Millennium Items with these cards had the same effect as using them with the stone slabs originally used. One notable problem he had was the Egyptian God Cards, whose powers were too great for him to manage. Fearing for his life, he returned to Egypt, and had Ishizu Ishtar, a current guardian, bury them in the Pharaoh's tomb. In the manga, Dark Bakura tears out his Millennium Eye and gives Pegasus a replacement ball instead, leading Pegasus to disappear without a trace under the presumption that he is dead. In the second series of the Japanese anime, Pegasus is the inspiration for Dungeon Dice Monsters, a game that Duke Devlin created. Pegasus's defeat at the hands of Yugi is the reason that Otogi challenges Yugi in both second series anime versions. In the anime only, Pegasus returns in the Waking the Dragons and gathers information on Paradius company and the company's true intentions. His soul is taken by Mai Valentine, but is restored by the end of the arc. At the end of the Japanese version of the anime, he is seen making a business deal with Zigfried von Schroeder.
In Yu-Gi-Oh! The Movie (yugioh wiki version)
Pegasus also appears in Yu-Gi-Oh! The Movie: Pyramid of Light, which takes place between the end of Battle City and the start of the Waking The Dragons arc, though it was produced and released when the TV series was in its final arc in Japan. Kaiba approaches Pegasus and demands to know what card can compete against Yugi. Although Pegasus had the card Kaiba wanted, he said he would only give it if Kaiba could defeat him in a Duel. Kaiba accepts the challenge and defeats Pegasus to gain the two cards that he needs to combat Yugi. This surprises Pegasus as there should have been only one card. Pegasus later assists the protagonists in the movie, including saving Tea, Solomon, and Mokuba from being crushed in a collapsing building.
GX (wiki version)
Pegasus makes frequent appearances in Yu-Gi-Oh! GX. At the end of the first year, he calls upon Chumley to work as a designer for I², and later makes his return during the GX tournament when one of his employees, Frantz, steals the only remaining copy of The Winged Dragon of Ra. Sometime later, he issues a Triangle Duel against Crowler and Vice-Chancellor Bonaparte for their right to work at Industrial Illusions, after the two believe themselves to be fired by Chancellor Sheppard. A bit after that, Pegasus and Sheppard meet in private to discuss the threat of the "Ultimate D-Card" that Aster's legal guardian (The D) stole from Aster's father 10 years before the timeline of Yu-Gi-Oh! GX which presumably would mean it was stolen during the timeline of the original Yu-Gi-Oh! when Aster was a young boy presumably around 7. After his meeting with Sheppard, Pegasus doesn't appear again until twenty episodes into the third season. Before that, however, Aster recalls a meeting he had with Pegasus a few months ago on the Crystal Beasts and their owner. Pegasus reveals that in his opinion the best duelists in the world are: 1. Yugi Muto, 2. Seto Kaiba, 3. Joey Wheeler, 4. Aster Phoenix, and 5. Jesse Anderson. Having discovered the Rainbow Dragon lithograph, Pegasus fulfills his promise to Jesse to create a corresponding card, and has it sent to the other dimension where Duel Academy had been transported via wormhole.
Pegasus has a habit of calling Yugi "Yugi-boy" and Kaiba "Kaiba-boy" in the Japanese and edited English versions of the anime and manga. This trend continues in Yu-Gi-Oh! GX. It is assumed he is trying to get under their skin or is simply showing his childish personality. However, when sufficiently provoked he can have a temper. Pegasus is also notable for his foppish manner, dandified appearance, and effeminate hairstyle, all of which have led to him being referred to as "cutie-pie" and an "overdressed prima donna."
Pegasus uses a Toon Deck focused around the card Toon World which, in the anime, is a one of a kind card that allows him to play special Toon Monsters. Also, only in the anime, Toon World seems to have the ability to transform other monsters into their Toon counterparts. Specifically for his duel with Yugi Mutou, Pegasus created the cards Relinquished, Thousand-Eyes Restrict, Thousand-Eyes Idol, and Dark-Eyes Illusionist. To see his decks visit http://yugioh.wikia.com/wiki/Pegasus