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Simply put, Tournament Mode is a "Group Battle Production Mode". It works especially well when you have a situation with 4 people, but only 3 controllers. Then you could set up a five player tournament, and everyone will get a chance! What a relief! Within the tournament mode, there are three ways to play. "Tournament", "Win and Go" and "Lose and Go". 
Tournament
The tournament Mode is like what it's name suggests: a mode where a player advances in a tournament (obviously).
A number of things need to be setup before you can play. Set them up according to the amount of people are there.

Number of Players simultaneously: 4 Number of Players Enlisted: 16 Number of Human Players: 14 etc.
Rule: Tournament Number of Players: 4 Total Entries: 16 (2 Move On) Players (CP): 14 (2) Stage Select: Choose First
After that, you will set the normal amount of limits and rules, and hit 'OK'. Then the players will select their characters, and enter their name. Each player will do this one after another (a little time consuming).

The Character's colors are changed with the X and Y buttons.
Please Enter Your Name and Select Your Character Guest 4-13 Start Button: OK
When you press 'Start', the tournament finally begins! Who each person fights is randomly selected of course.
Exciting, isn't it?
Tournament Round 1
Then from left to right, the tournament starts. You then move the controllers over the character, and press start so as to know you have the right character. Now is the time to make sure you have the right controllers.

Pre-Battle preperations.
Guest 7: Please Get Ready Guest 1: Please Get Ready X Button: Save Start Button: Standby

And then the battle!>
The tournament is designed in a way that the victor of each battle advances to the next round, so a certain rivalry is formed.
At some Game Stores, you might play through the Tournament mode but then realize that you have to leave. But you haven't finished the tournament! Not to worry, but by pressing Y at the Waiting Screen you can save your progress!

The design of the Waiting Screen.

Guest 11: Please Get Ready Guest 13: Please Get Ready Press Start to Enter Save? X Button: Save Start Button: Standby
Win and Go Lose and Go
At times when you have 5 or 6 people, it is good to play the 'Win and Go' or 'Lose and Go' ruled.
Win and Go: The person who wins trades off with the person who is waiting Lose and Go: The person who loses trades of with the person who is waiting
Tha game will manage these kinds of things on its own! It's almost too good....

And then the battle!>
The 'Number of Players' refers to how many people play in 1 match, or the number of controllers you have.
Rule: Win and Go Number of Entries: 7 Number of Players: 4 Trade Off: 2 People

So after your characters are named and chosen, you will setup here. The 4 on the left will fight first. 
For win and go, let's say that Kirby had one the match. He would then move to the end of the line, and the next one in line (Ice Climber) will take his place.
These modes were designed so that games would progress as smoothly as possible, with as little switching controllers too. But this mode has no real end, and the progress can not be saved. Just change the rules or characters when you feel like it.
We have to think about how the player will want to play when we make the game, and that's what we were thinking about when we made this mode. We tried our best, so please enjoy!
Oh yeah, in the tournament Mode part, you can have up to 64 entries. Whether or not you will ever play with that many people is another story.

Aiee!
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