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Dulfite said:
I feel like the best way to handle it is to keep the core Nintendo characters, but scrap any outdated Nintendo/3rd party characters and replace them with current gen characters.

I was going to say this too. 

Mario

Pikachu

Samus

Link

Kirby

Donkey Kong

Yoshi

Fox

This is the original 8. It represents what was popular with Nintendo at the time.

A new 8 would look something like this:

Mario

Link

Current release Pokemon

Current release Fire Emblem

Splatoon

animal crossing

Kirby

Xeno

Only focusing on what is going on with the current Nintendo/industry would bring in a lot of different and fresh IP's. Also I think limiting the each IP representation to 3 max would be a good move too.