Like the Shadow Overlord, the Pixel Demon was an ancient evil defeated by the Monks and sealed up in a prison. Instead of a mirror, the Pixel Demon was locked away inside of the game Silver Surfer. Beating the game would release the Pixel Demon, so the game was made impossible to beat.
However, Chris Bores was so good (at using Game Genie) that he did manage to beat the game. As the Pixel Demon prepared to destroy the world, IG used the Inferno force to go inside the game and kill it with a Bob-Omb. However, the pixel demon survived (though it was heavily injured) and escaped into the real world.
The Pixel Demon is a powerful being, so powerful that R.O.B., the Game Genie, and Silver Surfer all fear it. It may be even more powerful than the Shadow Overlord. However, it was instantly defeated by the Irate Gamer through the power of bad script writing.
The Pixel Demon reappears (now having recovered from it's wounds) in the Duck Hunt review. It is revealed that it had been hiding in one of the Irate Gamer's Duck Hunt cartridges. After the Irate Gamer starts his review, the Pixel Demon decides to leave the cartridge to try and take revenge on the Irate Gamer. The Irate Gamer defeated it once again, and used it's powers to enter the game and kill the Duck Hunt dog.
- Despite its name, the Pixel Demon is not actually made out of pixels, especially his head, which resembles a badly drawn Flash game character more.
- During the Duck Hunt review, when Chris has the Pixel Demon on the palm of his hand, he exclaims "A Pixel Demon", implying that there are more than one..