I think a lot of it comes from having to work within the limitations of the technology they were designing characters for, only being able to use a certain amount of detail and colour etc. Leads to some properly great stuff, and as you say the actual art of them as well is fantastic
I can't find the article I once read that talks about that but it's absolutely true. Limted color palettes and big blocky designs helped make the sprites more readable. It also mentioned around SF3 how the new hardware let them make more detailed & fluid sprites. Elena was a specific example.
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Please tell me it’s also a gun in this case?