Yeah, it'll be better if it's the same earth.
It simplifies the story too compared than having universe travelling.
Yes, but speaking of universal traveling, another reason why it would be good for Streets of Rage and other Sega movies to share Wachowski's world is because a solution for universal travel was already provided in Sonic's first movie.
Rings are established as means for advance cultures to travel between worlds. No space ships or sci-fi explanations for travel or the complications, it's convenient, it's subtle in comparison to finding a parking spot for your space ship without causing a global panic and looks quick and easy. If Sega/Paramount ever made movies based on Alex Kidd, Phantasy Star, Space Harrier or Fantasy Zone and want any of those characters to visit other planets of go to Earth then just give them rings.
It's also why I wouldn't oppose if the Chaos Emeralds showed up in other Sega movies. I like the idea of Mr. X becoming physically powerful because he found one of the Chaos Emeralds and fitted it onto a ring which empowers him. Or if Dr. Roy Curien was given one of the Chaos Emeralds as a vital component for his BioReactor, allowing him to mass produce mutant clones.
I would love there to be a Sega Cinematic Universe with an
Infinity Saga with the Chaos Emeralds.
But I know I've been on about this in the
Sega Cinematic Universe thread. Just saying how cool it be if the Streets of Rage movie takes place on the same Earth Sonic and the Wachowski's reside on.