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With the location of Portugal's Mega Drive Tournaments changed to Queluz, there was a regrettable drop in participation for the Seventh Tournament. Dário Pelixo won the tournament after being Fifth Tournament winner Alberto Campos in a Street Fighter 2: Championship Edition. He had to work hard for his victory and on numerous occasions stood on the brink of elimination; having to qualify from Stage One via the third-placed playoffs, he then needed to beat Fátima Campos in a tie-break game on Ms. Pac-Man and as Dário once again peered defeat in the face, losing 4-3 to Filipe Semião on NHL '96, he scored two late goals in order to earn his place in the final. Ricardo Faria made it to the Third Stage for the first time in his history, while Filipe Semião's return was also marked with a return to Stage Three. Orlando Silva was eliminated early in the competition, as was Ferdinand Menéndez. The feared Fátima Campos failed secure her seemingly obligatory place in the Semi-Finals.
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