Yep, one of the weirdest of the first gen fighting games, and one of the last NES games made, Joy Mech Fight.
The idea is that each character is a robot - but their torsoes, heads, hands, and feet are all physically independant of each other, operating through remote control or magnets or something.
And this little guy is Neo:
Yep, that's pretty much all I got to work with. Plenty of room to come up with new stuff, eh?
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edit: and also he could be gigantic. Tall building sized.
As for what looks like "elf ears", perhaps those will be antennae.
Meanwhile, I have been inspired! What we see above would be "Combat Mode". For cutscene and 'back at the ranch' type situations, all the parts would attach to the torso, possibly extending a pair of knees from the legs for him to be able to walk. And those 'hands' would actually unfold into useable fingers in this 'munchkin mode'.
EDIT:
And a handful of some of the refpics I'm going to draw on for the mechanical bits:
I think you need to make the bottom half come up a bit in the center like a ninja mask, like in the sprite. Also, having the whole front "mask" curivign around back toward the "ears" would look cool too.
Meanwhile, started work on modelling the feet. Been a bit busy with paying work lately, so didn't get as much done as I would have liked:
The forearms disconnect from the arms below the elbow, and the remnants of the arms fold against the torso, and the feet disconnect from the legs below the knee, with the legs folding up against the torso. The head pops off, and the hands fold in to the forearms to make a sharp wedge, as the wings flatten out.
Yes, I know the original sprite had round "hands" with wings, but I like the wedge look a bit better, myself.
Now to start the low poly. Yay?