Game is 2D side scroller with cartoony animation and it was christmas themed, I think i played it on windows xp and it was on one of those game collection CDs you could get from magazine.
You could play solo or with one other person. There were two characters you could play as, one buff santa looking dude (his ult was that he created giant snowball), other character was skinny looking dude with brown and long hair.
Source: https://www.reddit.com/r/oldgames/comments/t5yf0d/help_me_find_old_game_with_buff_santa/