Pit Fighter was a precursor to the Mortal Kombat series and it came out in 1990. It was a brutal fight to the death, a chaotic celebration of violence featuring a choice of three characters portrayed by real actors, a host of enemies and the prospect of three way battles.
It was the first game to utilise blue screen technology in order to use real digitized actors in the game. They obviously captured multiple shots of the actors pulling specific poses and then slapped them together to give the rough impression of animation. This technique was later used to much greater effect in Mortal Kombat.
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