freeman123
Smash Lord
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Look at the different avatars you can choose from online. See how first they list all the different icons, then they list all of the playable characters that have been profiled on the site so far, and then they start listing different Mii avatars.
But notice how all of the characters are together. If someone like Captain Falcon, for example, were going to be a starting character, wouldn't it make sense for his avatar to appear next to all the other characters?
The only thing I can think of is that you either have to scroll further down to select hidden character's avatars, or you can't use hidden character's as avatars until you unlock them.
Either way, that would mean that there are a total of 19 starting characters. That kind of kills the theory that there will be over 40 characters, because I find it hard to believe that over half the characters in the game would be hidden.
It could also mean that there is no Sheik in Brawl, or that Sheik is a separate hidden character.