[quote name='Jimbo Slice']With the slow death of arcades as console technology caught up with them though, a lack of a console release till later in the games life really hurt it as well. I just don't think the lack of returning characters was the only reason that SFIII was a failure... I think it's a large, large number of reasons. Likewise, I don't think the success of SFIV is based exclusively upon the classic characters returning, I think that is just a factor of it.[/QUOTE]
I think the problem with Street Fighter III was that it didn't feel immediately comfortable. The Alpha games logically followed SF II and added a few components, the VS. games added a few more and quickly become way over the top with clean, simple graphics and tons of recognizable characters (both from SF and comics).
I remember trying SF III at a Fuddruckers in Northern Virginia in 1997 after spending stupid time with Alpha 2 and feeling like it was a step back. The animations seemed overly complicated, to the point that it wasn't always instantly obvious where or when to block. Pressing towards the opponent to parry was really awkward after 6+ years of holding away. To top it off, only Ken and Ryu made the new roster.
I have unending respect for SF III and the series that it ultimately proved itself to be but I'll never like it as much as the Alpha series or the SF II series.