Was this really a pilot?
This 'movie' seems like it was really an attempt at a pilot for a series. Which would explain why there were characters in the title sequence that weren't in the movie, they may have been saved for later episodes. It would explain the cheap animation and the lack of decent fight scenes. It also seems like it might've been two episodes put together, right at the halfway point is when Heihachi Mishima comes out into the open, perfect cliffhanger between episodes.
If that's the case, I can understand why it wasn't picked up. Even as a series, it's still pretty boring.
let's keep it real, partna'...give to the needy...