In an interview with Polygon, Capcom's Hideaki Itsuno confirmed that a sequel to Capcom vs. SNK 2 started development shortly after work was finished on the game. Capcom vs. SNK 3 was meant to be the last 2D fighting game in the series, but along the way it ended up becoming a 3D fighting game. The project was canceled due to SNK's bankruptcy, and the remaining 3D assets from it were repurposed for another canceled 3D fighting game, Capcom Fighting All-Stars: Code Holder.