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I think 8 characters is too many for a beta. This is how I would set the beta up.

5 min matches
3 arenas (Cycle)
5 characters (1 hidden, unlocked after ten consecutive matches, unannounced for surprise)

1. Mario
2. Pikachu
3. Link
4. Kirby
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5. Mega Man



"On my business card I am a corporate president. In my mind I am a game developer. But in my heart I am a gamer." - Satoru Iwata