You'd have to write the kombat system (lol) so it's more forgiving than a match in the video game, with the fatalities coming into play for pressing your luck too hard, and the forgiveness of Nether Realm to bring you back from the dead if you found a patron like Quan Chi or another sorcerer.
That means a coded martial arts culture of risk-commitment that would be binding and non-consensual once you've made the decision to let it ride (a bonus for exposing one's self to harm, a second chance once wounded, and level selection where you'd be placing both characters in harm's way in exchange for certain coded advantages), various classes of character related to the worlds (Earth Realm protectors having some degree of prescience between realms, Outworld horror gore genetic engineering, cybernetic repairs that would alter your character, sorcerers that could return you from Nether Realm, and Elder Gods that could play with fates), and a function of the game to character redesign via acts of fate.