We know Sakurai is happy about Persona 5 being represented in Smash. Someone mentioned something about Sakurai enjoying the DLC that's being represented in Smash, as if he's EXTREMELY happy about working with it. So if Erdrick is are supposed Square rep, it makes a little sense because Sakurai's favorite DQ game is DQ3 and that's where Erdrick originated from. Hear me out:
Now I'm starting to think Nintendo gave Sakurai a list of franchises to choose from, and Sakurai picks a character from that specific franchise to put in as DLC. Let's say Nintendo put Persona and Dragon Quest on the list, Sakurai picks his own characters he likes from that series; Joker and Erdrick probably appealed to him most, so he chose those two. There's probably more franchises on that list to choose from, not just five. NOW let's say if Nintendo put "Super Mario" on that list, he can choose any Mario character from the Super Mario franchise, whether they involve being in a major game or spin-off; Geno would be valid because he is part of the Super Mario series, the only problem is if Nintendo is okay with him. So maybe it doesn't matter if one company gets two DLC characters, as long as they're from completely different franchises then I think it should be okay. All I know is Geno had to've been on Sakurai's mind during the picking of the DLC, and we all know Geno has been on his mind for the past 10+ years. I think we know Sakurai would've mentioned Geno to Nintendo, but I don't know how they'd feel about him. So I'm not sure, which is why I want to wait this out for the next four characters. If Erdrick is our 2nd and the 3rd DLC character are characters Sakurai likes working with, then I believe Sakurai is choosing franchises who have characters that appeal to him most.