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I don't agree that that's why fighting games died for a bit. 2D fighters died because the community became exclusive, not too mention the death of arcades in general. 3D fighters flourished on consoles because they made bigger strides for features and accessibility. So DoA, Tekkens, SoulCaliburs, and such went on for successful console releases. KoF never really stopped releasing games on console, but KoF was always a niche game (to this day). Capcom just didn't give a shit about making SF, Darkstalkers, Rival Schools, anything for a good while. They had to have their arm twisted to even make SF4, and a small project in TvC motivated them for MvC3.
Many new fighting games are due to 1) Capcom getting their balls back and making waves with SF4, and 2) Many smaller devs bringing their projects to the limelight (indy development is going on in all genres anyway). We were going to see a new Tekken, Virtua Fighter, KoF, and SoulCalibur regardless of what Capcom was doing. They never stopped. And the digital platforms, XBLA and PSN made porting older fighters easy. And it's great that new fighters are making it on as well, with Arcana Heart 3 coming to PSN.
That's not oversaturation, it's just healthy. I mentioned shooters because if anything that's an overblown market, and nobody seems to give a shit. Some companies feel like they need to have a shooter just because. It's not like these companies are releasing fighting games to meet fiscal quotas (in many cases projections are always kept low).
Personally I don't there's enough fighting games from enough people. I wanna see new IPs from new studios. It's something I watch with vested interest.
SO I MIGHT BE BIASED
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