I've said this before E3. Smash is in a really awkward position between expanding and not expanding.
There's probably 2 dimensions in the "potential direction" in question. One being mechanical changes, and the other being roster size.
These are the scenarios I've thought of:
A. PORT
This is probably the "safest" option Nintendo has to at least not "anger" any fans: Just porting the game to whatever new console there is. Maybe give some extra balancing changes, add a few trophies, add a few songs, stages or costumes, but that's it. Sure, it will get a lot of complaints about being just a port. Given how Smash Ultimate isn't even exactly what anyone with a common sense would call a "port", yet there are some people calling out for being "just an enhanced port", or just complaining because of less newcomers, this is inevitably going to be a controversial decision. However, in the same way, people don't like cuts. No matter who you cut, there will be some voices asking to bring them back. Sakurai knows this and is probably why he even decided to make an "Ultimate" version over a new revision in the first place.
Since Sakurai also said that this "probably will never happen again", porting the game gives the advantage that people will not rage over whoever/whatever getting cut. It's also the best(?) way to prevent further division, with this being the "definitive" edition after all.
B. EXPERIMENT
Another way to play safe, at least for those who cares about character they already have over anything else. They can simply keep all the characters, add only a few when needed (e.g. new really strong IPs like Inklings), and focus more on improving gameplay than expanding the roster. It will probably take much longer time to polish/balance everything, but at the same time no one can complain that they "can't play XXX mode with YYY character". This is the compromise between having a "new direction" and having "no cuts". Whether it is even manageable is another question, however.
This is in my opinion the optimal "direction" to go for, but is honestly out of selfish reasons. Everyone but one of my most wanteds are in (hint: Those in are all veterans), so I don't care about newcomers anymore. Heck, I didn't even care about most of the entries in Smash 4, I just wanted Wolf back in. But since there are probably a lot more characters you all want out there, YMMV here.
C. REBOOT
This is the way Sakurai originally planned to go. Cutting everything in order to save development time, and instead focus on moving the series into an entirely new direction. The resulting roster would probably be around 20 (Sakurai's estimate) to 30 (Optimistic estimate). That is, if your main is one of those non-main character of a series, or even a main character of a non-prominent series, chances are you're not going to be able to play as your main again. Sadly this is probably also the most likely scenario. Given how Sakurai also went to this direction to begin with. Again, like the man himself said, an ultimate version like this will probably never happen again, so if they really went this way, there's no turning back.
Like a few of you mentioned, this is probably the "best" way to further split the fanbase. Especially after an installment that tried to bring everything back together again? Ultimate will end up being the 2nd Melee of the series. Not because of its gameplay (could be, but not mainly), but because of the roster it provided. This direction is also a double edged sword. If it's done well? Well cool, Smash might be even more successful than it already is. If not? It will just further trap the series into a complex situation. Continue experimenting and you end up with a situation like Paper Mario. Go back and you end up with a situation like with Star Fox. And even by then, you're stuck in this roadmap again.
Also like some people mentioned, if this ever happens it would feel like at best a "spinoff". But current clues points towards this "spinoff" being the inevitable future.
D. "CHANGING SPOTLIGHT"
This is one of the weirder options available, basically cutting some characters in favor of "giving some more obscure characters a spotlight". Think those fangames like Crusade or Flash2. Or what some Sakurai haters think Smash would be like if he stepped down.
Basically everything in option C applies here. Except it being likely. It may happen, I don't know, but I for sure wouldn't enjoy it. Should Smash go towards this direction, I'm just gonna pretend stuff after this game didn't exist, or simply not part of the series.
This has another problem, being that it further worsens the "roster size dilemma" we had in the first place. We're lucky to have everyone back this time, but if for some reason Nintendo decides that Smash should go in a direction where half of the roster is cut and replaced with some 10 or 20 more new characters, this would make a 2nd Ultimate truly impossible.
E. EXPANSION
I suppose this is simple enough: They don't care about the mechanic or even balance, or maybe even the potential problem with the CSS anymore, and just throw in whatever characters there are to add. Basically the opposite of option B, while still trying to keep the fans happy with the roster. The problem would be, as I've mentioned, the problem with balance and CSS. The current roster is big enough as it is and it may already scare away some new to this game, having so much character to choose from or fight against that it may be hell to learn/complete the whole game. Same with the developer side: balancing would be devilishly hard. Testing each character for bugs would be as well.
And this doesn't exactly solve the existing problems either. Like option A you're not splitting the fanbase, but delaying the split of it. Roster size is ever expanding and if you cut one, the character's fans will complain, but if you add more, it will be more of a burden. The problem lies in the concept of Smash itself. It's a crossover game that means that people are probably going to want as much character as possible. But at the same time having too much characters is not possible and there must be a line drawn for the limit of characters. Smash being basically a staple for each console doesn't help either, as that means the series must go forward in some direction, the question being which.
Further expanding the roster as if there isn't a problem is technically a direction one can go with, but not necessarily a solution, as with option A, you will end up in the same Roadmap again.
So, if Nintendo decides that they can somehow handle the ever-increasing roster, this might be the option they're taking even for this game (with DLC), maybe even porting this game to later consoles.
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Then there are also a few other weird options like seriously trying to go back to a certain game (mechanic wise or mode selection wise), or just trying to "catch 'em all" with an even more "deluxe" version that maybe supports previous game physics or modes.
Point is, whichever direction Smash goes with, there are going to be some problems. Which is whether the fans can accept the change. Unless one of these 2 happens:
- Fans accepts whatever change there will be with Smash, and stops caring about the old games
- Nintendo accepts that whatever they do the series will probably be divided, and stops caring about "uniting" the fans
Smash is forever stuck with the above-mentioned dilemma.
I'd like to hear about everyone's opinion on the 5 scenarios tho.