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48. Andy
Franchise: Advance Wars / Wars
Debut: Advance Wars (GBA, 2001)
A Commanding Officer of the Orange Star army. His special Commanding Officer powers include Hyper Repair and Hyper Upgrade. A retro Nintendo character.
46. Spyro
Franchise: Spyro series
Debut: Spyro the Dragon (PlayStation, 1998)
A young purple dragon from the Dragon Kingdom. He breathes fire, can use a charging horn attack, and can glide. He does have other abilities as well. Super Smash Bros. could do with more dragons.
45. Lip
Franchise: Panel de Pon series / Puzzle League series
Debut: Panel de Pon (Super Famicom, 1995)
The Fairy of Flowers from the world of Popples, she set out to free the citizens from the spell set by evil Santos, using her magic wand, the Lip's Stick. Retro character.
44. Arle Nadja
Franchise: Madō Monogatari series / Puyo Puyo series
Debut: Madō Monogatari 1-2-3 (MSX2, 1990)
A young girl with magical powers. She can use spells like Fire, Ice Storm, Diacute, Brain Dumbed, Jugem, and her signature move: Bayoen.
43. Bomberman
Franchise: Bomberman series
Debut: Bomberman (1983)
As you would've guessed, he uses bombs. Can also use Power Gear, and he can call forth allies, like Louies and Charaboms. Maybe borrow abilities from other Bomberman characters? It worked for Ness and Lucas.
40. Shovel Knight
Franchise: Shovel Knight series
Debut: Shovel Knight
Steel thy shovel! The king of Indies has arrived. Shovel Knight uses his trusty Shovel Blade as his weapon. There's also potential of knight vs dragon (a common trope) in Smash, Shovel Knight vs Ridley.
38. Crash Bandicoot
Franchise: Crash Bandicoot
Debut: Crash Bandicoot (PlayStation, 1996)
Crash was originally a rival to Mario and Sonic, but has made his way onto Nintendo platforms. He can use his signature spin attack, but he has other abilities up his sleeves.
35. Shantae
Franchise: Shantae series
Debut: Shantae (Game Boy Color, 2002)
This half-genie hero can transform into different forms. She also used Risky Boots' items in Pirate's Curse. She was once described as "the undisputed queen of indie characters". Shantae is Ret-2-Go!
32. Mii Mage
Franchise: Super Smash Bros. series / Mii series
Debut: Miitopia (Nintendo 3DS, 2016)
Expanding the Mii Fighters beyond the three currently in the game has been in speculation for some time. Mii Mage just makes sense.
31. Mike Jones
Franchise: (Retro characters)
Debut: StarTropics (NES, 1990)
A western retro rep. The issue here is that his game wasn't released in Japan initially. He also uses a baseball bat and yo-yo, which would make him too similar to Ness. Though they can make him work.