In one of the many Smash updates over the past months, director Masahiro Sakurai explained that team colors would work a little differently in the 3DS / Wii U sequel. In the past three games, teammates would change their entire color scheme — for example, if Mario and Kirby were on the Green Team, Mario's shirt and suspenders would be green and Kirby would lose his pinkish complexion. This time, the fighters get to keep their traditional colors and instead gain an aura that indicates their affiliation.
The way this aura works in the Wii U version is a little different than in the 3DS version. Look at the screen above — Captain Falcon and Mario are on the Red Team, while Link and Charizard are on the Blue Team. When fighters are in close proximity, the aura is extremely faint. However, once the fighters scatter and the screen zooms out, the aura increases in intensity. This way, you can easily track your team at any distance while avoiding tacky wardrobe changes.
Super Smash Bros. for Wii U may arrive on November 21. The 3DS build arrives this Friday, October 3.