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I think what we’ve seen out of the fighting game space is the outstanding successes are chock full of things to do outside of the core competitive multiplayer (Mortal Kombat, Street Fighter 6, Tekken 8, and even Dragon Ball FighterZ). Even if we do see a Killer Instinct that makes it to market, I don’t think Iron Galaxy will have been given the budget to incorporate those sorts of other modes.
From what i remember KI had a massive tournament community. Even received its own tournament.