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I don't think it'd work out well. No offense to Sakurai (my favorite developer ever) but he has a smooth bright style that fits really well for Nintendo's games, but wouldn't fit well for Sony.

With Sony's cast, a 3D fighter like Soul Calibur or Tekken would simply make more sense. If they want to do another PSASBR, they should go that route. Even a Marvel vs Capcom Style game would work better.

Or... get the old Powerstone team together, and use that engine.