Especially in the comic's early years, I had the tendency to switch gears on a storyline whenever I started to get writer's block or simply became bored with it, as happened here. I needed some time to decide what to do with the first Megaman game parody, and to give myself that time, I decided to go off on a complete tangent and have some giant monster attack. I suppose this could be looked at as the first time a villain attempted to kill everyone in the comic, the first of many.
Truth be told, this attack really came about when I was looking through my sprite sheets and saw the Yellow Demon, and decided I had to have him attack at some point. It's just such an awesome sprite! Plus, there are so many sprites of him, I couldn't resist.
One of the interesting things about this particular choice is that, as far as I know, he has no official name. Some sources refer to him as the "Yellow Demon", others as the "Yellow Devil". And that's only counting the yellow version. He also comes in green and black versions. Some people even refer to him simply as the "cheese monster". But no matter what you call him, he's commonly one of Dr. Wily's fortress guardians, and one tough bastard.
Now, these particular sprites originate from the Power Battles and Power Fighters arcade games. In fact, I used lots of sprites from those games, especially when I needed action-oriented 16-bit character sprites. One difference, however, is that the sprites from these games are all wider than their Megaman 7 counterparts. To make them fit, then, they all have to be resized horizontally. The Yellow Demon sprites are one exception, since I didn't know about the resizing issue when I first started using them, so I refrained from resizing them later. What that basically means is that this particular Yellow Demon, which would later become the character of Nate, is actually 125% wider than he probably should be.