Welp. I still think its dead myself. Although, I just wanted to point it out from the Source Gaming article to make some aware that
@PushDustIn said that.
It wasn't based off him being one of the first, it was based off him being the next character. Between the estimate of SK being supposedly "revealed within the next month or two" and that not happening, him not being the next reveal and the fact that all the third-party characters we have gotten are major, iconic characters with huge significance and gaming history (something Sakurai explicitly stated was a requirement for a third-party character) with SK fulfilling none of those attributes means there is absoluetly no reason to even consider this rumour.
Besides, it's pretty clear that a major point of the third-party DLC characters we have gotten are the kind that would easily outsell every single majorly requested Nintendo character and would be more profitable for Nintendo, even when taking into account the fact that the profits would be split up. In contrast, you can have select any majorly popular Nintendo fan requests for Smash and they would be guranteed to make more money than SK, considering that
- They are Nintendo owned, so the profits go completely to Nintendo instead of being shared with a third-party company
- They are all more known world-wide among Smash/Nintendo fans partially because they have recognizability among the Japanese Smash fanbase, unlike Shovel Knight who is barely known over there and come from better selling games on Nintendo consoles. Only around half of the 700k+ copies Shovel Knight's game sold was on Nintendo platforms and it's not as if he has great general popularity in non-Smash context unlike Cloud and Ryu
Even looking beyond the fact that all the third-party characters we have gotten are big name characters, SK still doesn't make a lick of sense from a business point of view unlike Cloud or Ryu. He is a high-risk, low-reward character in comparison to many Nintendo characters.