I don't understand why they just wouldn't make individual DLC characters instead of driving themselves into the ground making five at a time. It's absurd to me. There's no need for a stupid Fighter's Pass and there never should have been. Just release individual packs.
Well, the Fighter's Pass exists for a couple of different reasons. The first of which is that it's actually a direct communication of intent for DLC with Smash and what the future will hold and creates a plan of action that will be followed. Smash 4's DLC was sporadic and nerve racking at the best of times, and downright unknown at the worst. We'd get tons of content, then nothing, then something small, then back to nothing, etc. It wasn't the most well planned out content and led to frustrations in the community. The Fighter's Pass communicates the plan for DLC: There will be 5 brand new fighters, with 5 brand new stages, and music to accompany them. They will all be released by February 2020. That's an incredibly insightful look into the DLC future that we never had before and helps us know what to expect as fans. It's good communication from Sakurai and Nintendo. Plus, it creates an overall time table for developers to follow. It's a pretty standard practice in business to plan out what you're going to make, and the Fighter's Pass is just that reality.
It also exists because they decided their "season" of content beforehand, and it's extremely easy to bundle all that material together as
EarlTamm
said. They know they've committed to this much content within the season, there's no real reason not to provide the public with the information and the option to purchase it altogether. Especially if you offer this bundle at a discount since there will invariably be people interested in buying all the DLC anyway.
And, yes, it's also driven by a profit motive. Season Passes are common in gaming these days, so people will often just buy them as soon as they see them. To those people who are either uninformed or unwilling to educate themselves on the issues, there's money to be gained from them. People will also buy the Season Pass without knowing the characters beforehand for a myriad of reasons whereas they might not buy individual DLC packs depending on the circumstances. Once you buy the season pass, you lose the ability to complain about the DLC offerings because you've already agreed to them, and Nintendo also knows that. And finally, there are people who will buy the Season Pass purely out of hype for the right character being announced (so many Banjo Kazooie fans said this and confused the hell out of me). I don't really get the last logic, but it happens and Nintendo stands to benefit from them as well.
But honestly, there's no reason for it to not exist. All the DLC is still available individually for purchase. The only exclusive thing to the pass is the Rex Mii costume (I think, it might be available separately now for all I know), so you don't miss anything substantial by not opting in to the pass. The pass also clearly communicates the types of content with Sakurai expressly telling fans to only invest if they were convinced of the idea beforehand. It gets thrown around as anti-consumer sometimes, but it's anything but. It gives an additional option for the DLC and is one of the least scummy things I can think of regarding DLC. People are just a tad impatient with the character reveals. And again, it's not even a limited offer or anything of the sort. It's just an option, and options aren't a bad thing.