[quote name='GuardianE']See, but that's my point... kinda. They never really were competing against each other in the U.S. The average gamer has hardly even heard of King of Fighters, but when you say Street Fighter EVERYONE and their mother knows what you're talking about. Hell, half the people who DO know SNK now is because of the Capcom vs SNK series. My point is, while they're diverging in paths with their own niche audience, they're still competing with each other over certain markets and certain groups of people. I don't think that those will change with the latest incarnations.
And I seriously doubt that SNK would make a new release as a download. Downloadable games just seem like less of an anticipated release to me, and I know I'm not alone. It may be the direction we're headed for the future, but I don't know if it'd be so advantageous right now.
And in terms of Capcom's goals for SF4, I definitely think you're right. I think they're trying to recapture any lost audience... but at the same time, it's not with the graphical direction, in my opinion. Their Street Fighter games sell well. The Vs. series sold well. The reason to go 3D is that it afforded them the opportunity to advance the look of SF4, both technically and artistically, while maintaining 2D gameplay. I personally feel that the reason they went 3D is because they wanted to break the mold of Street Fighter... find a way to make things look more dynamic and have camera control for Supers... I don't think it's necessarily to appeal to casual gamers (take the EX series as an example, which did not sell well).
I think they took a look at HD sprites and said... "eh, high-res sprites. Been there and done that. We need to change something that can evolve further in the future instead running ourselves into a wall."[/QUOTE]
First, I think you're overestimating the popularity of Street Fighter among a casual audience. Sure, everyone knows what it is, but how many people rush out and buy the games when they come out?
Second, I think that as a downloadable title KoFXII would garner the attention of people that would otherwise dismiss it. Alot of gamers check out XBLA and the PSN all the time, and I think the case with KoFXII is that a demo could really sell the game to people. I can all but guarantee you that a 50-60 dollar disc based release of KoFXII in America will flop. If they release for 20 or 30 it would probably do much better, but I don't see that happening. My guess is that it will retail for 40 and garner mediocre sales, but would have done better as a digital format that people would have much more exposure to. I think people have less of a problem with 2D when it's in the downloadable format. Do you think Castle Crashers would have sold as well as a disc-based game?
Finally, the 3D look of Street Fighter 4 works in multiple ways. I still do think that a primary reason for its use was so that a casual gamer wouldn't dismiss it for being 2D right out of the gate. I also think that the graphical update was a way to recapture lost audience. I'm sure alot of gamers wouldn't be happy with another 2D Street Fighter, but I think that an average fan can really agree with what you said and think that Street Fighter has taken the next step forward. I think that if it was 2D, people would still think of it as a "last-gen" game. Also, Capcom hasn't really made HD Sprites (SSF2THD withstanding, because it isn't out) yet, so it isn't "been there, done that" so much as it is "Seen that, don't care for that".