I dunno, the N64 had just as long a lifespan as the other consoles at the time. That said, the Game Boy was still selling like crazy (one word: Pokemon), especially with the Pocket and Color out in the N64 era, and the Game Gear was already effectively dead by then. I don’t know what Nintendo would’ve been so afraid of there.
Ah, yes, the infamous “Capcom Test”, as a YouTuber I watch calls it. There are thoughts of making a sequel in a franchise, so Capcom re-releases an old game (or in this case, collection) to gauge interest, not thinking about the fact that people may already have other versions of the game and don’t need this one, then they cancel the sequel before it even gets off the ground if the re-release of the old game doesn’t sell enough, which to Capcom is often a stupidly high number. This already killed a Darkstalkers revival, we can only hope it doesn’t do the same for MvC.