As someone who thinks the series regressed after 3, it's a lose lose situation for me. On one hand no more VF on the other more VF:Tekken. No thanks.
If MS wanted to money hat a fighting franchise from Sega I'd rather have them give Eternal Champions to Iron Galaxy. It would be almost a clean slate for them since the game didnt have a strong identity outside of the brutal deaths. Plus it would be interesting to see what they could do when they're not locked into KI's combo system.
I completely agree with you. Virtua Fighter 3, like the two games before it, was years ahead of its time and basically a preview of the future of video game graphics.
The only way to make a Virtua Fighter that lives up to the legacy of the old games would be to make a crazy, bleeding edge game, but then it'd actually have to have a budget, which they don't have, so the whole thing's a waste of time.
If Nvidia wasn't retarded (but they are),
they'd be paying Sega to make a Virtua Fighter that used ray tracing and only worked on their new GPUs, because it'd perfectly align with VF's legacy and Nvidia's goals. VF needs to be bleeding edge. Fighting games are the perfect technical showcase title. Small maps, focused only only really two main objects. You can just throw hardware resources at a tiny little scene. Basically, a VF sequel that actually took advantage of modern PC hardware should look like a CG movie at this point.