I think this would be a fantastic idea from a fan perspective and business perspective. I know the quality of thier games have dropped like a brick, but thier games still sell well and gets lots of exposure.
That is exactly what KI needs. They need exposure and for somebody to come expand the lore.
Call me hopelessly optimistic, but I think they could do something really cool with it. I can imagine Kim Wu being the protagonist while globe trotting and meeting the other fighters and monsters in the universe to prepare for the big battle against Gargos. It would be goofy, fun, and bombastic… Everything that KI is supposed to be.
Playing devil’s advocate here, but a game with meaningless choices, no combat mechanics in a fighting game universe, and a cast where a third of the roster can’t speak a human language let alone the number of human characters that can’t speak English in a narrative driven storyline is bound to have too many roadblocks to be successful.
Telltale games do not give IPs more exposure, they leech off of a popular established universe (The walking dead, Batman, Minecraft, LoTR, etc), create their OCs to meet with established characters, then make a profit using recognizable lore and choices that never matter to protect the narrative.
Hate to say this but Killer Instinct was a dead american franchise that was resurrected almost two decades from its previous game. There is not enough of a dedicated fanbase to sell it too and the IP is not as popular for casuals to know and try out the game. Personally for me I wouldn’t buy the game even if it had KI in it. Telltale games are way too predictable to pretend to be entertained by it.
I’d say there would be a better chance at a Ninja Gaiden (Original Xbox Era, not the NES) style game starring Jago. I just don’t see KI as something you could mold into a story based game, not in the style of Telltale Games signature approach anyway.