I loved this movie as a kid; that said, it hasn't aged well. Despite the label, description for the film, this is actually Fatal Fury: The Motion Picture. On the plus side, it's the third and final part of a story that began with the OVA's of Fatal Fury and Fatal Fury 2; this helps explain why Joe Higashi is just coming back after a 10 month layoff from the ring and speaks to why Terry Bogard is famous for defeating Geese Howard and Wolfgang Krauser, (the two villains from the previous video films.) But it's a pretty poor cap for the series. The writing is pretty terrible, the plot moves in fits and starts, with long periods of nothing really happening or lots of exposition, and then bizarre finales for certain characters and threads that come swiftly and without a satisfying resolution.
As for not aging well, it suffers from very uneven animation; some of the battles look absolutely terrible, while a few of the scenes are animated spectacularly; sadly, it's more on the side of poorly animated than well done. The finale is very cliche and poorly written: you'll know the ending way before it arrives, and likely will complain about the plot-demanded heel-face-turns of particular characters who seem to make decisions based on what is convenient to the writers in the moment rather than what actually would be consistent with what has come thus far.
Overall, I give it two stars: there are a couple of really well done action scenes that stuck with me even a few decades after watching this as a kid. It's not a great adaption of Fatal Fury, (the best was probably Fatal Fury 2, which actually felt very cinematic), but Fatal Fury: The Motion Picture at least attempts to elevate itself out of its roots and into cinema... it just doesn't do it very well. If you like Fatal Fury, anime, or late 80's/Early 90's action films, you might enjoy this a bit for what it is.