Because everyone knows they can't match the awesomeness of MK

lol

Thing about it man is, you can only do so much with a fighting game without a big budget.

Mortal Kombat has got to recognize the strength that the Eastern fighters have and counter that with something really good. Mainly being gameplay, but it could also just be a refreshed, overwhelmingly fantastic story, and or a fantasy element that captures the world like WoW has done(figuratively speaking of course, I hate WoW). Which is going to take some money to do...a big movie...merchandise, and a lot of advertising dollars won't hurt the process either I think...

At the same time, Eastern fighters are being forced to recognize why Mortal Kombat sells so well. Story and Fantasy elements. That costs them money every time they release a new game, but they do well enough to keep producing games.
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So, I don't doubt there has been good games under the radar that use violence to sell their fighting game...but I think it's a bigger selling problem than just that.

We've been desensitized to alot of the creativity they could come up with, and then, the market for a new fighting game is pretty much sat on by the fighters that are already big.

Another element involved now is Laws and Regulations. But I think the biggest deal here is "Nobody has figured out how to out-do what's there in the fighting genre yet." I mean, you got these "Street Brawler" type games, and then there's "Fight Night", but nobody has made the game that everybody wants to play...
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Too, I think it has to do with people being used to what their used to, and not wanting a new fighter...."we" really just want something more from the franchises that are there. Which isn't even just a fighting genre "problem"...

Because mainstream is interested in efficiency and playability and less interested in gimmics. Also another factor is the relative upheaval over gore-games. Third, nothing is new under the sun, and gore has been overdone Fourth, interest is declining in such games.

Fifth, noone bothers anymore.

Eastern fighters have nothing over Western fighters. Eastern fighters always will get blown out.

i really don't know why mabye it was because it is how violent we were a long time ago?

That might actually be true.

What western fighters are there, besides MK?