Before there was Smash Bros, Kart Fighter was out for the Famicom. Here's an article on the first Nintendo character fighter.
http://www.siliconera.com/2006/07/05/before-super-smash-brothers-there-was-kart-fighter/
http://www.siliconera.com/2006/07/05/before-super-smash-brothers-there-was-kart-fighter/