C/D The logical thing for Sony to do would be to
brush this under the rug.
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This game was a complete failure and an embarrasment to all fighting games and Smash Bros. If a company started admitting its failures they would go under immediately. They have to please their stockholders. If a game can't sell extremely well it's not worth playing.
Deny. Pseudo sequel on PS4. And this time actually get third parties or just make it all first party. It's not as though this is really a new IP; its a conglomeration of many. It cant fail by normal new IP standards. The audiences for these characters exist as evidenced by the millions sold by almost each one, PSASBR just didnt click with them.
I wouldnt mind another brawler, or they could make it Power Stone style which would be awesome. They could even make it a psn title if they are really scared about another one.