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I'm saying that if my theory is correct -- and again, all I'm doing is speculating wildly -- then A) this was all done long ago, meaning there was plenty of time to choose a character for Smash, and B) Nintendo bought Scalebound lock stock and barrel, cutting Microsoft out of it entirely. However, if that happened, I doubt they'd give up one of their IPs very easily, even if it's a dead one, so they needed something to sweeten the pot, i.e. hypothetical Smash rep. They know they don't have the IP to pull off a Smash clone, Sony learned that the hard way, and getting into the highest-profile game of your competitor's is a hell of a publicity gimmick.