A little bit of discussion as I briefly touch upon this subject regarding competitive play. It's something I want to set straight, personally, so people know the differences and why it is that having better mind games is better than having tehcnical skill.
So what are mind games? Basically, it's how you, as a player, reads your opponent's movement in the game. It's being able to predict where he's moving and attack at that moment where he's most vulnerable. It's also about having the ability to counter your opponent. In addition to that, in the case of having your counter countered by your opponent, it's being able to counter the counter your opponent used against your first counter. Make sense? Good.
What is technical skill? To put it quite simply, it's ability to string combos from one move to the next without fail. Fox, for example, tends to be a very technical character. As a player, you can do the following:
Shffl n-air > shine > waveshine, shffl d-air > shine > waveshine > JC shine > JC shine > waveshine > Up-smash
Basically, all that good fancy stuff.
Now, having technical skill is good, and it can certainly help get some recognition for doing some of the more complex combos in the game, but that doesn't mean it can win you matches. A person with awesome technical skill but no mind games will always lose to someone who has awesome mind games but no technical skill. Why is this so? Because the 2nd player will always have control of the match, watching how you move, leading you on to do what he wants, laying traps for you that you can easily fall into, and striking at the right moments. Mind game players will mostly play a defensive game. Meanwhile, the 1st player might just be tumbling about, using every single combo he knows, and possibly not landing a hit at all. Most technical players are aggressive, and charge in without thinking.
If you'd like a simple analogy, think of the differences between having an automatic gun and a single-shot gun. With an automatic gun, the shooter may continually spray his fire into your general direction, hoping that one of the bullets might hit you. That can be compared to an aggressive player of technical skill.
Whereas, a person with the single-shot gun waits carefully, takes his time, watches his opponent, aims with deadly accuracy, and kills you with one bullet. This is a person with excellent mind games.
Of course, a person who has both great mind games AND great technical skill will make an awesome player, since they'll only use complex combos when neccesary, but with great significant effect. Not only so, but they'll have more options for them to use in order to fake you out and lay more traps for you to fall into.
So, discuss.