The game was a commercial flop. Didn't Sony dissolve the studio that made it after the disappointing launch?

Lesson to all developers:  Don't try to copy Smash Bros, you can't replicate their success, because you don't have any Nintendo IP.

I was hugely disappointed that you had to kill with supers, but even more so that there were so few PS1 characters.

Not sure how 8 players in one game affects another game on another system. Sure, they're similar games, sure, Smash is better, but what does the 8 player feature have to do with it? It's a special mode that isn't available in all circumstances. It's awesome, but a single feature won't singlehandedly kill another franchise. No reason Sony couldn't copy it.

But yeah, Smash isn't why PSAS died. PSAS died because the game sucked. Sony made a quick buck off the IP rights by turning it into a mobile game, then cut off the developer. They're done with the franchise. It's a shame, because I really want a Playstation mascot fighting game, and all I have is PSAS. Sony needs to get Crash and Spyro back, make a new, better PSAS, and use it as an excuse to make more games with their classic IPs. New Crash, Spyro, Ape Escape, Jak, Sly, and Ratchet. Throw in a new PaRappa and MediEvil. All on the PS4 alongside a good PSAS. Watch the PS4 outsell the PS2 by 2:1.

Your thinking bothers me. Just because Nintendo does it one way, SONY's would have to do it? If it doesn't match with what Nintendo is doing, it's wrong? I don't see a sequel happening so I guess I doesn't matter anyway...

This.

They tried to copy Smash but then changed the core mechanic which made it worse.

PS Allstars was just plain awful. I wouldnt be upset the slightest if a sequel never happens.

I think they may be not developing a sequel for SASBR.... probably they were dissapointed by its sales.
Would Sony consider it if SSB proves to be a huge hit this holiday?......

What's wrong with killing with supers?

PlayStation All Stars Battle Royale killed all chances of a sequel to PlayStation All Stars Battle Royale.

The thing is Sony had an exclusive that could compete with Smash: J-Stars Victory Vs. I know it's not a Sony title, but it's one of the few mascot-fighters that has characters as recognisable as Smash (the other being MvC), and it was a Sony exclusive already. If handled correctly, it could have been a good contender for the genre. Too bad it was a Japan-only title (I guess getting the license of all the characters in the west was too much of a hassle to Sony and Namco-Bandai).

Playstation All-Stars's gameplay was terrible and heavily imbalanced, I really don't understand how they can mess that up so bad. Also the design choices felt extremely lazy as well; boring-looking menus, lame intro, still-image cutscenes, poor character roster, etc.