I still remember competing, mainly because (for me) it was an *over*whelming experience, especially at my age.
I think some sites have talked about how the whole thing was laid out and done, but if you haven't read it, it was like this (at least in Washington, but my guess is that it was the same everywhere):
Basically those who wanted to compete had to stand in a line and wait their turn, but in batches of 8 (10?) kids. Then the next batch of kids would come up and stand in front of a series of TVs, and they were told the rules, time limits, etc. and then given a controller. You can catch a glimpse of what it looked like
in this Youtube video at 00:45. They'd start the clock and everyone would play until the time ran out. You'd have to be familiar with the NWC cart/game to know what I'm talking about; I'm sure there's a ROM out there of it somewhere. And I *hated* Rad Racer.
I'll never forget what happened to me: it had been a REALLY long time since I'd played SMB (I didn't own the cart -- my family couldn't afford one of the normal NES systems, so I got the basic model which contained the console, a controller, and the Nintendo Hint Guide (large black book covering tons of games -- I still have it), but no games), so the first thing I did was ran head-first into a goomba. I didn't even jump. Great way to start. ;)
Anyway, after the clock ended and your scores were added up and the top 5 (I think?) players got to go on to the next competition round. I was one of those. Those who made it had to hang around and would eventually be called over a loudspeaker to come and compete again.
The next competition layout was entirely different -- you and the other kids were taken up on to a stage in front of a huge audience of people (~100-200). Four of you had to stand -- not sit -- on stage and look down at the floor since the TVs were inset into the floor at an angle. The top player from the previous round stood above the others, and was put in something that was more segregated from the rest (much more private). Above the entire stage was a huge screen displaying whatever Nintendo wanted -- usually they'd flip between different on-stage players to see how they were doing. And there was an announcer (also on stage) giving play-by-plays to the crowd, in a very dramatic manner. And don't forget stage lights and other whatnots. The announcer mainly focused on the top player, but would occasionally flip the huge screen over to one of those standing on the stage and give the audience an idea of how he/she was doing. The
same Youtube video at 00:48 and 00:53 describe the environment.
For me, this situation sucked major. First off, I'm nearsighted (and don't wear glasses/contacts), so seeing a screen that's inset into the floor I'm standing on is a pain -- and don't forget the glare. Secondly, I was incredibly shy and very introverted, plus had medium-grade stage fright, so putting me into that situation meant I wasn't going to play very well. My friends who were there told me "you would've played a lot better had you been up in that booth like the #1 kid", and that's definitely true.
And yeah, you played the same game again.
I don't really remember how good or bad I played that time, I just remember a lot of squinting, sweating, and wanting to sit down on the stage just so I could see the damn screen. The announcer was being a total dick too, since I did overhear him saying something like "And player #4... doesn't appear to be doing so well. Watch out for that turn!" Just a lot of pressure, and I hated it.
Anyway, after finishing, I was surprised to find that of the kids on stage, I barely made 3rd place, which put me into the semi-finals which were slated for the following day. I was given the badges/emblems (they're fabric of some kind, except for the back, which has adhesive like a sticker) and told to be there tomorrow at 12:00(?) to see if I could make it as a finalist.
As I said, I had to return to Oregon (I was in Washington visiting with friends of mine), so I didn't get to compete. But if the competition environment was anything like it was that day, I probably wouldn't have made it to the finals. Just way too much stress, especially at that age.