The spaces next to Megaman are there because those are reserved for other characters (from the Megaman universe)
From left to right:
Kirby (Kirby)
Meta Knight (Kirby)
Mario (Super Mario Bros.)
Luigi (Super Mario Bros.)
Wario (Super Mario Bros.)
Peach (Super Mario Bros.)
Yoshi (Super Mario Bros.)
Bowser (Super Mario Bros.)
Donkey Kong (Donkey Kong)
Diddy Kong (Donkey Kong)
Ness (Mother 2)
Lucas (Mother 3)
Pig Mask Army (Mother 3)
Sonic the Hedgehog (Sonic the Hedgehog)
Shadow the Hedgehog (Sonic the Hedgehog)
Knuckles the Echidna (Sonic the Hedgehog)
Tails Miles Prower (Sonic the Hedgehog)
Balloon Fighter (Balloon Fighter)
Tamagon (Devil World)
Diskun (Famicom Disk System mascot)
Space Pirate (Metroid)
Samus Aran (Metroid)
Pit (Kid Icarus)
Fox McCloud (Star Fox)
Ray Man (Ray Man)
Crash Bandicoot (Crash Bandicoot)
Spyro (Spyro the Dragon)
Master Chief (Halo)
Arbiter (Halo)
Samurai Goroh (F-Zero)
Captain Falcon (F-Zero)
Solid Snake (Metal Gear)
Leon Kennedy (Resident Evil)
Sora (Kingdom Hearts)
Lara Croft (Tomb Raider)
Banjo (Banjo-Kazooie)
Simon Belmont (Castlevania)
Soma Cruz (Castelvania)
Link (The Legend of Zelda)
Zelda (The Legend of Zelda)
Tingle (The Legend of Zelda)
Maple the Witch (The Legend of Zelda)
May (Pokémon)
Lunnick (Pokémon)
Andy (Advance Wars)
Mr. Game & Watch
Eliwood (Fire Emblem)
Sigurd (Fire Emblem)
Skapon / Sukapon (Joy Mech Fight)
Earth Worm Jim (Earth Worm Jim)
Susumu (Mr. Driller)
Jack (Harvest Moon)
Pac-Man (Pac-Man)
Bomberman (Bomberman)
Worm (Worms)
Megaman (Megaman)
Shadow (Final Fantasy)
Byuu (Bahamut Lagoon)
Crono & Co. (Chrono Trigger)
Cecil (Final Fantasy)
Schleiman Tank (Dragon Quest Heroes: Rocket Slime)
...Woo... Whadda rush...