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It took until the near the 2010s for DC to finally have its own fighting games with a roster of various characters and of course the obvious choice was to cross it over with Mortal Kombat since the other tied juggernaut franchise of fighting games was Street Fighter which already chose Marvel (thus extending the Marvel and DC fandom war into video game by a pretty close counterpart franchise in gaming).
But it does make me wonder why Capcom was so favorable to Marvel? Even before Marvel VS Capcom, they had an obscure fighting game called Marvel Superheroes vs Street Fighter and a year earlier they made a crossover fighting game specifically with only X-Men characters with their Street Fighter cast. So it seems even before Marvel VS Capcom became the poster child for crossover between characters from different franchises in different mediums in a video game, Capcom already favored Marvel a lot.
What is the reason for this? Why Marvel over DC?
They were fans, and in particular pre crossover they did the Punisher game which lead to further talks with Marvel in licensing out their characters to them
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I don't really feel like DC comics jell well with any Arc Sys franchise really.
Marvel and Capcom actually share very similar visions I'd say in terms of the tones of most of the characters