S Tier: Steve, Terry, Sephiroth
Out of these three, Steve was the only one I actively wanted to be in the game. I wanted him partially because I liked Minecraft, and partially because I thought the Steve-Banjo rivalry was dumb. I thought it would be hilarious if both got in, and they did, haha! I didn't know much about Terry, but my 8th grade History teacher loved the KoF games and let us play them sometimes during lunch, so I had some nostalgia for the character. Also, I main the shotos, so another auto-turnaround fighting game character was cool for me. The DLC villain I wanted was Dr Eggman, but Sephiroth did not disappoint. Really happy that FF got content in the end, and he's a blast to play in free for all.
A Tier: Joker, Byleth, Hero
I know borderline nothing about these characters. They're in A tier because they're the only characters a friend of mine wanted. I have nothing against the characters, and I think they're fun, but they just aren't for me. Hero is just super fun, and Dragon Quest was 1000% "deserving" of a spot in gaming's pantheon.
B Tier: Piranha Plant, Min Min, Banjo
I was just kinda neutral on these.
C Tier: Pyra, Mythra
Still neutral, but I really don't have any connection to xenoblade at all, so they're probably my least favorite. I'm not hating on then though, and they are fun to play.