However you forgot one important variable; the PS3 at the time was out of budget for most gamers and the X360's controller sucks all the fun out of fighters.
Hmm.. useless controllers never held back SF IV or DOA IV sales on the 360 and VF 5 and Tekken 6 just sold will poor, even with decent userbase.
VS fighter are a limited niche market. That's why many don't development them any longer, be in the Arcade or Home. I don't like it, but that's the current marketplace.
it was basically a game running on the Shenmue fight engine.
Its was a take/port of the Model 3 game. Its sold like crap, even with the SEGA faithful. I seen many people claim is uses the Shenmue engine, I don't think it does myself, its suffers none of the missing troubles of Shenmue, I would say that 18 Wheeler was more using the Shenmue engine
Its a decent take of the Model 3 game and was brilliant fun in multi player mode (I loved the X-box version) . Hurt by sub bar graphics and a limited genre.
but pointing at Spike Out and saying the genre is dead is like pointing to Final Fight: Street Wise and saying the genre is dead.
The market isn't dead, just limited and niche (like 2d shooters) . And next to no developer is going to spend £20 million (what most gen games cost) on such a limited genre
That is the sad reality.
SOR3 may have been a commercial failure but BareKnuckles 3 is a classic, SOR3 US release was heavily modified and features like the bike segments were removed altogether.
That wouldn't have made a difference, there were changes with SOR II. It was just a genre that even inthe 16 bit days was on its way out, with people wanted better value from their games.
Valkyria Chronicles revitalized the J-Rpg genre by evolving i
Its sold quite lower numbers and is now forced to be developed on the PSP. The Japanese RPG's gone through tough times this generation (bar ones by some of the Major players) people have just got bored of the same game play and moved on
My simple point is that if done right, the franchise can be resuscitated, all your points of changing trends and genre's dying are valid but if Capcom can bring Street Fighter back into the main stream SEGA can bring SOR/VectroMan or any other franchise.
You could say that about any IP. I love SEGA to make a new Panzer Dragoon Orta II, But have to wake up to the fact that 3D shooters was a limited genre in the 32 bit days, never mind now .
I Love Wonderboy, would so love to see a 3D version using the Hedgehog engine, hell I love a BUG III
But its a limited genre and no developer is going to spend 20 million on developing such a big risk, even racers have found it hard this gene.