What Playstation Game is This??? Full Points!!!?

I played this game a long time ago so I'm not quite sure the name. It has different player characters like link (the elf), pikachu, zelda, mario, and donkey kong and other ones as well. The player chooses its character by placing a little red or blue dot on their character and then when they begin to play, the characters battle each other in an arena.

Arena: One arena is a floating lava battlefield that sinks into lava every once in a while.
Another one is castle ruins.



Thanx for anyone who answers.! Ive been wanting to buy this game but cant seem to find the name.
 
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