Shulk's original Xenoblade chronicles game bombed and he's in smash. Shulk had no other game until his popularity in smash restored and greenlighted future Xenoblade entries. Monolith Soft even admitted that having him in smash helped a lot
https://gamingbolt.com/xenoblade-ch...cers-credit-shulk-in-smash-as-huge-for-series
Anyway if you think KOS-MOS is dead then you're simply wrong. So I ask you if she got in why can't she do the same thing Shulk did? Give her series more recognition and love.
I think the difference here is that Xenoblade is a Nintendo IP and Xenosaga isn't. Nintendo wanted to expand Xenoblade, and it worked, yes, but Xenosaga isn't their game; It's Bandai-Namco's. It's not as easy for Nintendo to just decide "Hmm, I want to expand this series," especially seeing as Xenoblade was made as a spiritual successor to Xenosaga because the latter didn't do as well as hoped. The main thing going for KOS-MOS is that MonoSoft loves her, but MonoSoft isn't calling the shots. She's sandwiched between Nintendo-owned Xenoblade characters, who were successful and/or could be made successful with the right push, and Bandai-Namco's other IPs, many of which are
huge and would make a more appealing option.
Sure, we have Terry and Banjo, but their circumstances are different. The former is the face of SNK, who was big in the arcade scene, heavily influenced Smash, and supported the Switch early on, so it had a lot of legacy and could potentially seal a new partner for Nintendo. The latter was
extremely popular, being a consistent poll-topper since Brawl, and arguably even back to Melee. They were also some of the biggest options for their respective companies; Terry was SNK's mascot and Banjo was far and away the most heavily-requested Microsoft character, plus having the bonus of coming alongside Steve, who's from
the biggest game ever and covered the bases Banjo didn't. In comparison, KOS-MOS is just a lot smaller.
Not saying she's
impossible, but she's not exactly likely.