I'm pretty sure that part about Xenoblade is false. Look at Monolith Soft's previous properties.
Xenosaga is still owned by Namco.
Xenogears is still owned by Square Enix.
If Monolith Soft were ever bought out by a different company (EXTREMELY unlikely, Nintendo like 95% owns them, when prior they were only partially owned by previous companies), Xenoblade would remain with Nintendo unless Nintendo specifically allowed them to take it.
I'm pretty sure Yo-Kai Watch is owned by Level 5.
Notably, the trademark is registered by Level 5, not Nintendo:
http://tmsearch.uspto.gov/bin/showfield?f=doc&state=4802:wt3yx0.2.1
Whereas Xenoblade Chronicles was trademarked by Nintendo of America:
http://tmsearch.uspto.gov/bin/showfield?f=doc&state=4802:wt3yx0.3.1
The back of the boxart also says copyright Nintendo/Monolith Soft:
http://img.gamefaqs.net/box/8/6/2/113862_back.jpg
I can't see to find the back boxart for Yo-Kai watch, and the NoA page does not list copyrights on it:
https://www.nintendo.com/games/detail/rsgXp1moRctIZoJTtwJzOnHJ6x-1Y8XI
Its notable that despite the fact that people assume either the developer or publisher of the game automatically owns the game, that's simply not true. It all depends on the licensing. By default the game's Developer owns it if the licensing says nothing about it, but in many cases the publisher basically claims the rights to the IP as long as they own it, and the publisher tends to be the one to file trademarks as well (which is interesting in that Level 5 did it for Yo-Kai Watch). The problem with trademarks, though, is that whoever files the trademark owns that name in that region, and they don't have to give it up if they don't want to; see Natsume.
Trademarks are your branding and are very important. Nintendo owns the trademark for Monolith Soft in the west, while Level 5 owns it for Yo-Kai Watch.
In terms of Final Fantasy, the IP itself is bigger than Sonic the Hedgehog. However, due to inconsistent characters, Cloud himself is not, so this assessment is pretty solid overall.
This is the problem I'm seeing. If we are getting pre-ballot next month I see at least 2-3 more characters coming after that. There's no way in hell I see us only getting ONE ballot winner, and I don't think "veterans" will be ballot winners either.