They became popular again once Capcom and a few others realized fighting games have to become more accessible in order to expand their customer base.
Before Street Fighter IV, fighting games had become too complex to play for most people which led to less popularity and a niche-like fanbase. It is sort of similar to the New Super Mario Bros on the Wii getting huge sales numbers because a lot of people are more comfortable playing a 2D platformer than the more complex 3D platformers.
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