Steve is one of those characters I feel like people are really sleeping on, simply because they don't like the idea of him in Smash.
Minecraft is a huge series with a ton of worldwide appeal, clocking in at a whopping total of
144 million sales. He's had
multiple games released on Nintendo platforms, receives a
ton of attention in Japan, which is something nearly every western 3rd party character can't claim, and has even received
attention from Sakurai himself, to the point where
he actually bought the game twice, once on the Nintendo Switch, and another time on an unspecified console, due to how interesting he found the game to be:
The character of Steve himself is also no slouch. He's constantly featured across merchandising for the franchise, such as
plush dolls,
figurines,
action figures,
LEGO, you name it. Plus in Japan, he seems to be a
relatively popular character request for a newcomer this time around, which once again, is something nearly unheard of for western 3rd parties.
Really, I'd say the only things holding him back is how he's a Microsoft owned character and how he isn't as iconic as the game itself or something like a Creeper. The first doesn't seem to be much of a problem considering both
Microsoft's statements on Smash Bros., and the fact that the Wii U, Nintendo 3DS, and Switch versions of Minecraft exist in the first place, but you never know. The second could very well be a potential dealbreaker, but I'm not Sakurai. Steve is still very prominently featured across merchandising, but alas.
He's been a prominent and successful figure on Nintendo consoles, especially within Japan, is an extremely iconic character across the globe, and has received a good amount of attention from Sakurai himself. People are sleeping on him hardcore, simply because they don't want him in Smash.