People wanted a Xenoblade character since early ultimate speculation days, that was 3 years ago.
Finally we were heard and thats good.
BTW I know that now there are no more reliable leaks but at Sakurai’s last presentation, he mentions that they first thought of putting first Rex with Pyra/Mythra and if you remember that 40 name character list, it mentions Rex. Moreover, it also mentions Arthur and we got a mii costume of him. Maybe it was a simple coincidence (List:
https://gamefaqs1.cbsistatic.com/user_image/8/0/3/AAe0kDAAA_Lz.jpg). If we take out already confirmed fighters, mii costumes and from that same companies, we got a list of 19 characters left:
1) Bandana Waddle Dee (Nintendo)
2) Bill Rizer (Konami)
3) Captain Toad (Nintendo)
4) Doom Slayer (Bethesda)
5) Flynn (Sega)
6) Jibanyan (Level-5)
7) Lana (??)
8) Linkle (Nintendo/Koei-Tecmo)
9) Lloyd (Namco-Bandai)
10) Porky (Nintendo)
11) Professor Layton (Level-5)
12) Rayman (Ubisoft)
13) Ryu Hayabusa (Koei-Tecmo)
14) Shantae (WayFoward)
15) Spyro (Activision-Blizzard)
16) Crash Bandicoot (Activision-Blizzard)
17) Quote (Nicalis)
18) Yuri (Namco-Bandai)
19) Sgt. Cortez (THQ Nordic)
So from this list, which ones do you want as the final 2? I don’t have too much faith in these leak but its possible to suggest that during these past years Nintendo talked with a lot of companies about putting their characters in smash (Bethesda confirms that) and they make a list of possible candidates from each company. They showed Sakurai the list and he chooses the candidates, then negotiations proceed.