But is there really a demand for it? I mostly see people talk about SF with Tekken and KOF, not MK.
Right now? Not really. There was one point in the past, when it was hot a topic (I think Midway still existed at that point) and people wanted to pit SF vs MK. And I remember Ed Boon mentioning that couple of times, that he wanted to make MKvsSF.
Even so the topic is pretty much dead. Of course if devs were to mention MKvsSF idea again, it would certainly resurrect the flame and people would start asking for the game again.
I dont think itll work. Blocking alone has its own problems. Even with injustice, they had back to block. Mk has always had a block button, its very important to the series. The only way you could do that is to either pick one or include both
As I said before, it ain't the real problem. Because they would still have to create an entire new fighting system which would be exclusive to that game. You cannot have only MK mechanics or SF mechanics in MKvsSF. From game development point it doesn't work, because that defeats the whole purpose of "merging". So if you're merging, you take out only certain elements form both games and incorporate them in the new system.
Because you can't make MKvsSF in such way that if you play MK character it feels like you're playing MK, but when you play SF character it feels like you're playing SF. No. You can't do that. If you play MKvsSF it must feel like you're playing MKvsSF, that you're playing a game which has two merged games in it.
Of course for the block they could just make certain controls exclusive to one side of the characters. But when gameplay wouldn't be balanced as there is a massive gameplay difference between holding block button and holding back to block. So in the end they would have to invent new system. And that is actually a main reason why I want to see MKvsSF. Because these two games are so different gameplay wise, that they would have to go "beyond the box" and create something completely new. It is a massive challenge, but no real progress ever came without going out of the comfort zone. And I am all up for Evolution.
P.S And btw. I checked CAPCOM's stance on that idea, and it turned out that the ONLY problem they have with that idea is that they would feel uncomfortable with Ryu or Chun Li bein decapitated. The only problem which is stopping MKvsSF from happening. Nothing from gameplay side.
While, it is true that CAPCOM has made some gory games, SF wasn't built from that. So yeah. The only problem for them.
NRS and CAPCOM still keep in touch about that idea though.