Where does this fit into the lore though?
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The final DLC character for Super Smash Bros. Ultimate is none other than Sora from the Kingdom Hearts series. This reveal came a short time ago today from series creator Masahiro Sakurai in what was called the "Final Presentation."

A new trailer released today included this new reveal. Mario tosses a fireball that opens a portal that somehow brings Sora into the Smash Bros. universe. The lore behind Kingdom Hearts is so convoluted that I'm sure this all makes far more sense than it initially seems.

Sora will be released on October 18. He will cost $5.99 (USD) on his own or is included in the Fights' Pass Volume 2 if you already own that.

Sakurai says that Sora is designed to be strong when fighting in the air. He will utilize his keyblade for attacks, with several of his attacks designed to juggle foes into the air for additional hits. Sora is quite light though, meaning he can't take a punch for the life of him. There will be some magic use included from Sora, a few that are used for attacking and a few that are apparently just cosmetic taunts.

Sora is based off of his original look in the first Kingdom Hearts game. He will have other costumes that reference the rest of the series though. He comes with both English and Japanese voice options.

The DLC also includes nine Kingdom Hearts songs as well. If you have Kingdom Hearts: Melody of Memory save data, you will get a bonus song. A new stage, based on Hollow Bastion, is also included.

Also revealed today are some Splatoon Mii Fighter costumes and a Doom Slayer Mii costume.