Luigi The President
Smash Hero
Literally why is a Fire Emblem character in this equation
Nintendo is a business. A business's number one goal is to make money.
Now tell me - who's going to make more money for Nintendo:
A. Sora, the protagonist of a critically acclaimed series whose series' fans are thirsty for more and who is known to millions simply due to association with the number one brand in the world whose series is at it's hypest right now.
B. Geno, an obscure character who appeared in one game 20+ years ago and who has a small yet dedicated fanbase; who wasn't even the main character of said game.
C. A character from Fire Emblem, which is in and of itself still incredibly niche compared to other strategy games. I guarantee you more people know of Clash of Clans than Fire Emblem.
Sora is gonna make SQUARE ENIX more money. Sora is gonna make people go to KH3 which is on almost every console EXCEPT Nintendo ones.
Geno will exclusively make Nintendo money. His game is only on Nintendo consoles.
Geno's small yet dedicated fanbase got him a Mii costume and numerous shout-outs from Sakurai, so are you sure his fanbase is that small? Let's not plug our ears now.
I'm just saying that, Sora, while very popular, would take a LOT of money to even contract and his inclusion would benefit Squenix much more than Nintendo.