Yeah. Their content in Smash4 and base Ultimate was ridiculously small, but maybe it really was simply due to licensing issues. If they've managed to sort those out (especially as of Sephiroth's Challenger Pack), it might be easier for them to be involved in Smash moving forward. This seems all the more likely when you consider how much they've been jumping at the opportunity to promote new releases (and even to commemorate a two-year-old release) through the Spirit Board events.Why is everyone predicting the Square characters are getting cut? They seemed like very popular inclusions and I feel like Square could really use the publicity with how infrequently they release huge mainstream games. I feel like people might be exaggerating how difficult they are to work with.
Though, I also wouldn't put it past Squenix to have simply used Sephiroth as an opportunity to gatekeep Final Fantasy VII's content behind paid DLC (there's no denying that these guys are just a bit greedy when you consider that they price their retail games higher than everyone else's). But this could simply mean that their veterans would have to come back as DLC at worst.
And I'd say the rumors about them getting bought out by Sony are way overblown. Putting aside the fact that Sony are a literal trillion dollars in debt and they somehow only just managed to acquire Bungee, we've already discussed before in this thread how Japanese companies in general seem to be reluctant towards buyouts. Also, between Octopath Traveler, Triangle Strategy, upcoming remakes of Dragon Quest III and Live-A-Live, the upcoming Dragon Quest XII, and pretty much the entire Bravely Default franchise, all starting out as Nintendo exclusives (and in some cases, still are), it seems apparent that they still very much view Nintendo as a viable platform (it's especially noteworthy that, even if some of the games I mentioned did eventually lose their exclusivity status, it was mainly due to a PC port, while Sony has yet to get them). The only reason they seem to be in such a cozy relationship with Sony is because they typically need a more powerful system for their latest Final Fantasy or Kingdom Hearts (in a way, this goes back to the reason Square left Nintendo in the first place back in the late '90s, which was supposedly over Nintendo's refusal to use CDs), and given that they're putting cloud versions of these games on Switch (or a downgraded Pocket Edition in the case of Final Fantasy XV), while definitely not ideal, you can see that they're at least trying to give those games to Nintendo's audience as well.
Plus, and this is just my personal opinion, their ridiculous attempts at cinematic AAA titles with decade-long development cycles are the number one reason Squenix has been faltering over the years. So if they were ever forced to choose between Sony and Nintendo, I'd be all for them trimming that fat to focus exclusively on less visually impressive, but still fun, games on Nintendo's consoles (and if nothing else, they could expand their focus on PC gaming if they still wanted to make those overhyped titles..... of course, they'll need to do a better job on their ports before that can happen).