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Cougarman said:
apart from diddy kong the rest of the characters are owned by RARE right? so how will they work that out?


Well, since Nintendo owns Diddy Kong and the Donkey Kong franchise, there would not be a big problem in using characters from there. 

I also read about this rumor earlier and saw that they will put in random animal characters from Nintendo owned IP's, like for example the armadillo in Dillon Rolling Western



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