It all has to do with accessibility. Just look at SF2 when it first came out. You had 8 characters and 6 buttons. Each character had 2 to 3 special moves and that was it. Simple to execute and whatnot. The gameplay was simplistic. What started killing the fighter over time was the advancement in the gameplay. And not only that, but the hardcore gamer had a hand in all of that as well.
The casual gamer did a short kick into a fireball. 2 hits. Simple enough. The hardcore gamer went and decided “hey, two hits is not enough to satisfy me.” Now we start going into the whole strats and tactics and development of big combos and big damage direction. The casual gamer who likes his shit simple was scared by these crazy tactics and figured that it would be too much work to even develop a way to get out of it. So they went and played their adventure and RPG titles. Then there are fireball traps which annoy the hell out of all gamers. The casual gamer can’t do NOTHING but jump out of the way of something. The hardcore gamer? He goes for style and finesse and WILL find a way to get out of the corner during a fireball trap. I mean, consider this bullshit as you may see it. But, lets be real here, WE destroyed our own scene(partially).
Then theres the lack of support from the big companies. Ok. Name a time and place where Capcom or ANY other fighting game developer EVER sponsor a tourney in the U.S.? Name one time? Exactly. Everything here is paid for by whomever decided to hold the event. In Japan its completely different. The big game companies sponsor tournaments all the time. Of course its more serious over there because the players are a lot more dedicated to get better. But don’t be fooled, they have their fair share of casual gamers as well, just not as repressed as ours. And then theres Sony’s “well, we don’t want 2D on our consoles” policy. That is the gayest shit to ever come about from ANY company. The Dreamcast was the first of the three next gen systems of this generation to even have the best graphics at the time. Hell, some of the games on that system still look better than some of the PS2 titles. Sega never backed away from the 2D market. Of course the Naomi drive is their hardware. But in all fairness, they supported all 2D titles. They even had network modes in them so you can play online. Of course that didn’t last too long because the DC’s demise was inevitable.
Its a tried and true arguement/debate/whatever. But the “next big thing” you guys were looking for was the Dreamcast. That was the answer to all of fighting game fans dreams right there. Of course the ports of SF3 and SFA3 were screwed up, BUT STILL, it was the only console with EVERY fighter you can imagine. The demise of the DC was obviously Sega’s fault for not marketing the damn thing well enough. And yes, I do realize that it still would have been the beginning of the console tourney, but when you look at it from a positive light, which console of the big three(Xbox, PS2, GC) have the most fighters?