Killian noted that even if sales covered cost, placing developers on the project would mean removing them from others, like Super Street Fighter IV. Killian put it simply, saying, "When fan service becomes a black hole for time and money, that party gets ended pretty quick."
Another explanation, according to Killian, is that Capcom doesn't want to flood the market with fighting games. He suggested that most gamers only buy one or two fighting games a year -- thanks mainly to the amount of time it takes to master them. In other words, releasing too many games could dilute the sales of all of them. Besides, we all know that what Capcom should be working on is a new Darkstalkers.