I think it was a good idea to make a fighting game mixing many PlayStation icons, but a very bad execution: I think that the art style was a wrong choice, that would have been something a more stylized that would give a more cohesive style to all these characters that have a very different style.
And that regarding the genre, I'd have tried to avoid making a Smash clone and instead go for something more appealing for the PlayStation fans, something like Street Fighter, Tekken or Mortal Kombat. Or even better: to try to find their own style, different and unique. Maybe starting with the Power Stone approach and adding some cool twist to make their own take.
And well, the selection of characters. Many PlayStation icons were missed, a bigger cast with beloved characters would have been better.
Regarding the gameplay itself, I played it a bit not sure if due to a demo, a big deal or something like that and wasn't great but was solid.
Imagine if they tried it now
Jin from GOT
Atreus and Freya From God of War
Joel and Ellie from the last of us
Get Elena and Chloe from Uncharted
Get Delsin from Second Son
Aloy and Sylens from Horizon
The Boy and Dog from The Last Guardian
Get Raven and Dusty from Gravity Rush
Kutaro from Puppeteer
Oddsack and Swoop from LBP 3
Get Wonder from Shadow of the Colossus
Get Muarry and Bently from the Sly Cooper Series
Get Rivet from Rift Apart
Get a whole bunch of Resident Evil Characters like Leon, Jill, Claire, Chris
Peter Parker and Miles Morales
Some Destiny and Destiny 2 reps
Deacon from Days Gone
Sam Porter from Death Stranding
A boss from Elden Ring
Get the DMC V Dante and also get Trish, Lady and Nero
The Hunter from Bloodborne
Get some Silent Hill reps
Get some Monster Hunter Reps
Ash from Concrete Genie
The Yarneys from Unraveled 2
Get Final Fantasy VII Remake Cloud, Barrett, Zack and Tifa
Get some FF XVI characters
Frey Holland from Forspoken
The Detroit Become Human three main characters
Maybe a rep from Grand Theft Auto? Like CJ or Claud
and Lara from Tomb Raider
also could they still use Nariko from Heavenly Sword still?
I imagine The Evil Within characters (If they would be included) like Sebastian and Juli would have to be DLC characters due to Microsoft owning the franchise now kinda like Banjo in Smash Bros