PokéBase - Pokémon Q&A
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Challenge Mode is exclusive to Black 2, unless you transfer it over to White 2. What it does is make your NPC's AI rise, making the game harder than it normally would be. This is great for people like me that want more of a challenge in the ingame.

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Oh and by the way its unlocked after you beat the game and it goes away when you restarted your save file
thank you that helps