Basically I had a thread in idea engineering proposing a fullgame that was just me throwing together shit I already made into a universal system, plus a few new characters. This was around the time Bad Box Art Megaman was confirmed for SFxT if I recall correctly. To make fun of all the shitty compilations that try to put Mario into the game and how all the fullgames that never get off the ground have Mario in them, I said that the only way I'd have Mario in the game is if he was the one from the movie. MalaDingDong was thrilled with the idea so we used to joke about it back and forth. To further the joke, I commissioned
Tozani (who was one of the original artists for Rage of the Dragons) to draw a sketch of Bob Hoskins in the Mario suit (I dunno if he posted it on his deviantart, too lazy to look).
Later on, Seanaltly was offering to sprite full characters. Since I happened to that amount of money lying around, I just asked him if he'd rather help Rolento finish up Terezi Pyrope or if he'd make Mario. He chose Terezi Pyrope SO 1 HOP3 YOU 3NJOY PL4Y1NG 4S 4 BL1ND 4LT3RN14N G1RL W1TH 4 C4N3 WHO T4LKS L1K3 TH1S 4LL TH3 T1M3.
j/k he picked Mario obviously, and a few months later Mario was sent to me, and I was pretty much sitting on them while I worked on Pupa and other odd projects.