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From: RUMOR: Nintendo approached Disney about adding Kingdom Hearts' Sora to Smash Bros. Ultimate, but was shot down
Oh but Banjo is? A character only revered by the Nintendo fanboy bubble? Okay. 👌
Banjo is... what? I said a character's significance to Nintendo should come before their significance to the industry as a whole and that's a pretty good description of the Banjo-Kazooie series... it's mark on the industry was fairly small, but within Nintendo it was huge... even after Microsoft got their hands on it they don't really do much with it... the history it made on Nintendo remains the majority of the franchise...
How do you expect new customers to check out your game if you only have characters they don't care about? Other fighting games have guest characters so that more people buy the game outside of the core fanbase they'll always have. I can assure you the Terminator was not for Mortal Kombat fans in mind.
Are you trying to imply the only way Nintendo can expand their base through Smash is to include third-party characters that have little or nothing to do with Nintendo?
Not at all. It was a ridiculous decision to add Byleth because the only purpose it to promote another game that some fans may not care for, and he's tried this several times already. You can't MAKE people care if they don't want to. Why can't Nintendo's own marketing be enough to sell the game? Lara's popularity was obviously organic.
The point I'm trying to make is that people still buy the DLC... even with promotional characters and minions and other such characters whose popularity and recognition pale in comparison to others... so picking popular Playstation characters over less-popular Nintendo characters isn't going to make that huge a difference...