Mercury Madness

Mercury Madness is the first episode of Video Game All-Stars In Space, and the twenty-eighth episode overall.

Plot
Banjo kicks off the third season with introducing the eighteen contestants to the Banjo Space Station, where they would go to different planets with each episode. He splits them into two teams, and tells them all to enter the rocket, as their first challenge would be taking place on Mercury.

As the first challenge is about to start, Banjo eliminates Bonnie, Cortana, King K. Rool, Meta Knight and Sora as they were not present, telling the remaining thirteen that they would fight each other in one on one laser gun battles, with the loser being eliminated from the challenge. This would continue until all of the members on one team were out. Team Cosmic Commanders plans to send out Falco and Joker early on due their proficiency with guns, while Team Star Strikers try to deal with their numbers disadvantage. Gundham Tanaka and King Dedede are the first two to go, and Gundham lands a hit on Dedede rather quickly after rolling out of cover. Hiro Akiba offers to go next, and Banjo chooses to put Luigi in for Team Star Strikers as they took too long to decide. Luigi doesn't do anything initially, causing him to lose the point when Hiro hits him.

With Team Cosmic Commanders two rounds up, they get quite confident, and Lucina offers to go up against Sonic. This ends up being tougher than expected, as he is too fast for her to hit, while she doesn't move around much, getting hit. Falco decides to step up next, going up against Viggo. However, his gun jams, and without being able to shoot his opponent, he loses. Mario has no choice but to fight next, and is put up against Kirby. The two of them shoot at each other, frequently missing, until eventually they hit each other. Banjo declares that Mario shot first by one hundredth of a second, giving him the win. Sonic offers to go again, this time against Captain Falcon. Captain Falcon tries to hide behind cover, but Sonic somehow manages to shoot him anyway. Kirby gives Cortana Zubaz pants to distract the other team, but as she was late, she is barred from competing, leaving Spyro to fight against Viggo. Spyro fires and dodges at the same time, aiming to play defensively, even if it caused him to miss frequently. Eventually, he lands a hit, moving on to fight again later on.

With only six contestants remaining in the competition, things get a little more serious. Hiro fights Sonic, but his speed is too much, causing Hiro to lose. Falco tells the remaining three Cosmic Commanders to be careful against Sonic as he'd taken down three of their members at that point. Viggo gets upset about losing, as his hand was broken and bleeding all over, so he attacks Spyro. In the meantime, Gundham goes up against Mario, but loses his concentration when his hamsters are hit, which makes him start punching Mario, despite Kirby telling him to use the gun. Mario shoots Gundham, and he passes out afterwards, with several contestants attempting to help the injured hamsters. Joker is put up against Sonic, but once again, Sonic is too fast and hits Joker pretty early on. Next, Mario is put against Spyro. With the two friends up against each other, they have some difficulties hitting each other, but eventually Spyro's defensive play puts him into the final round against Sonic. Kirby advises him to use his flame breath, which he agrees to. He approaches Sonic carefully, being sure to dodge, before stunning him with fire and shooting him, managing to take the hedgehog down. He throws his gun down afterwards and celebrates.

Banjo congratulates Spyro on winning the first part of the challenge, granting the Cosmic Commanders a point in the second part, deciphering scrambled codes. Gundham's hamsters are returned to him in good health, and he is ready to help out again. Banjo gives out some codes, which confuse several contestants, but both teams solve a few and get some points. Cortana's Zubaz pants distract a few members of the Star Strikers, which gives the Cosmic Commanders more of an advantage, eventually leading them to a win when they score enough points, sending the Star Strikers to elimination. They return home on the rocket.

At elimination, Banjo holds eight 1-UP Statues, and hands the first few to Sonic, Bonnie, Meta Knight and Mario. King Dedede, Luigi and Viggo are also confirmed safe, leaving King K. Rool and Sora, both who did nothing in either part of the challenge. It's revealed to be a tie, so there is a revote between the two. Much to Spyro's dismay, K. Rool is the first contestant to be voted off despite doing well in the previous two seasons.

Later that night, Bonnie exits the competition without saying a word, effectively quitting the show.