Story
Blue Destiny takes place in Universal Century 0079, during the latter part of the One Year War. The central characters are part of the Earth Federation's experimental corps, who test new technologies before they're mass produced and distributed to the Federation Forces as a whole. Yu Kajima is the leader of the Marmot Team, a subdivision of the experimental corps, along with his friends Philip Hughes and Samana Ferris. During a sortie, the team encounters a blue GM attacking enemy and ally alike. When the GM comes after them, Philip and Samana are quickly defeated, and Yu only barely drives it off. Later, the team is attacked by a Zeon mobile suit that fights similarly to the blue GM. Just as things look their worst, the blue GM appears and drives the enemy off.
Back at the base, Yu is assigned to pilot the blue GM, codenamed Blue Destiny 1. He becomes highly proficient with it, despite the fact that its EXAM System has a severe impact on his mind. Later, Yu and his team participate in the Federation's drive to recapture California Base. Using Blue Destiny, Yu is able to stop the Zeons from launching a nuclear missile. However, he is soon attacked by the blue Zeon MS, piloted by Zeon ace Nimbus Schterzen. As they fight, the voice of the EXAM System reveals itself as a young Newtype girl named Marion Welch. She explains to Yu that she was originally an assistant to EXAM creator Chlust Morses, but an experiment gone wrong put her in a coma and made an imprint of her soul on the machine. As a result, the EXAM System gives any pilot who uses it surrogate Newtype powers, but most have been driven insane by Marion's attempts to contact them. Marion begs Yu to destroy EXAM and free her spirit. During their duel, Yu and Nimbus cut each other down simultaneously and destroying their EXAM Systems.
However, Yu's work is not yet done. Soon after, he meets Professor Chlust Morses himself and learns that the old man is an insane xenophobe, paranoid with the fear that Newtypes will take over. Morses justifies EXAM as a necessary step in ensuring that non-Newtypes remain dominant. As they look over the newly completed Blue Destiny 2 and 3, Zeon special forces attack, allowing Nimbus to hijack Unit 2 and kill Morses, ensuring that he won't be able to make EXAM anymore. Nimbus escapes to space, with Yu and his friends in hot pursuit using Blue Destiny 3. The group chases Nimbus to Side 5, where EXAM was first made, and a final showdown begins. Nimbus declares that he's the only one worthy of using EXAM and attempts to kill Yu. Once more, the two strike each other down in unison, but this time Nimbus is killed, while Yu drifts in space, where he is later picked up by his team. Later it is revealed that Yu was one of the Jegan pilots who assisted in pushing Axis back at the end of Char's Counterattack.
Read more about this topic: Mobile Suit Gundam Side Story
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