A lot of people have been asking me for my opinion on which I’d rather have a sequel or a new season so I figure why not lets do what I do best…making threads. 
Let me just copy and paste what I wrote in another community members post.
The simplest way I can explain my reasoning is a jar of playdoh. The more you play with it the more dry it will get; no matter how much fresh playdoh you put over the dry stuff, eventually you have to buy new playdoh. This analogy is the best way to describe this iteration of Killer Instinct…which is that no matter how many seasons you try to create to cover up the old, eventually you need a new game to remove limitations of the old (the dry playdoh).
Up until this point people have just associated new content as needing a new season because this is how it has been presented to us thus far. This certainly doesn’t need to be the case going forward, they can always add new characters/content without labeling it as a new season.
The biggest problem for me with new seasons personally is the inevitable changing of system mechanics and characters which in turn as we’ve seen in previous years have driven more people away from the game than has introduced new people. This evidence is apparent by looking at stream numbers and tournament participation which are both at an all time low. Lets also not forget the enormous amount of bugs each new season has introduced to the game which was the biggest complaint about S3. Granted bugs are just an inherit problem of game design, that doesn’t change the fact it’s just simply frustrating for competitive and players in general when they have to wait weeks/maybe months for crucial character bugs to get ironed out. There are bugs still in the game that were reported month 1 of Season 3 like Orchid not being able to hit confirm in certain situations.
I think it’s also important to note the limitations of the game engine are holding up development as well. Correct me if I’m wrong but there have been numerous things mentioned that they are unable to add to the game in the past because it would require either a massive code overhaul (expensive) or without going through and reanimating everything like to add in head tracking or the ability to turn off negative edge.
Going forward I just don’t see any real net gain or benefit in continuing development on this version of the game instead of diverting resources into development of a real sequel perhaps for PC and Scorpio. You just satisfy the same small casual player base that will simply ask for a Season5 right as S4 gets launched lol. This would just be a much needed refresh for a lot of people with fresh character designs, new graphics engine without limitations that Double Helix had in place etc. including being able to rectify some of their mistakes with designs and costumes like Kim Wu’s face or most of the retros; something they will simply never get to if they continue making seasons. While development is happening on the new game, for sure in the meantime continue to support this version with perhaps a couple DLC characters and costumes. People love jumping on board the new game hype train as people love to play the new fresh hottness. We’ve seen this with MKX, KoF, Tekken and even KI S1 where literally everyone was playing like LTG, Justin Wong, Sonic Fox, ROG and many more.
Now the only real flaw in my plans logic is in the budget. There is no real secret at this point that KI has had a pretty low budget for development, I mean you can just look at the animation for Kim Wu’s Dragon Sweep and realize this. If they aren’t willing to invest more money in development on this version what makes me or anyone else think they would invest in creating a new sequel which would obviously be more expensive then creating a S4 aka putting a band-aid on a wound that needs stitches. Only if by some miracle Phil Spencer gets generous one day and walks into Adam Isgreen’s office and says “Here is $50,000,000 for KI” (just a random number)I don’t see this ever changing as they game just isn’t worth investing into at the moment in an already niche market which is dominated by SF. Shoot if I was rich I would pour money into this franchise like crazy because that’s how much I want it to succeed.
I am only one person here and obviously don’t speak or work for IG or MS; just as a fan and passionate community member like everyone else I just want whats best for the game and its future overall and a Season4 isn’t whats best. If I have to wait another 2-3 years for a true sequel then so be it.
In closing I leave you all with what a next Gen KI could look like on Unreal Engine 4
If they make a new one, then the complaining will start all over again. “My favorite move is gone”, “where is “x” character at”, and “it does not play like the other KI”.
. If more or more vairred content keeps brining players back to KI and keeps them interested in merchandise and the franchise then thats EXACTLY what we need.