Smashboards

Technically.

I mean, there's still the argument of the requirement being having a game from the characters home series appear on a Nintendo console. Kratos has only appeared on someone else's series on Nintendo, but God of War has still never touched the consoles. Even for Cloud and Joker, this applies, with numerous FF games on Nintendo systems and the Persona Q series on the 3DS. If you want to go further, you could also make the argument that the characters has to make an appearance on a game in their own series, on a Nintendo console (doesn't matter if it's a spin off or not, as long as its part of the series), which still gives leeway to Cloud and Joker, with Final Fantasy Theatrhythm and Persona Q2. He's still a level above any character currently in Smash.

I will admit that Kratos is at least on the same level as Master Chief now though.