1) I used a picture I got from Skateboarding.com. It's Kenny Reed doing a backside flip. Anyways, feel free to use anytype of image, or you can use the one I used below:
2) Now apply Filter>Artistic>Cut Out and use these settings:
3) Apply Filter>Stylize>Diffuse and use these settings(this will smoothen out our retro picture):
Pretty simple eh, thought so. Your final product should be similar to mine, just in better quality:
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