Thea Realm Fighters
Developer: High Voltage Software
Publisher: Atari
State of completion: Close to completion, former programmer estimates it at 90%. Was shown at the E3 1995, seen on the AEO @ E3 '95 video.
Genre: Fighting game.
Also planned or released for: ???
Notes: Game is listed as a CD game due for October 1995 in the Atari Dealer Price List Q3/1995.

But at that point, everyone who could've paid for continuing development felt it was time to move on to Playstation, so both Dactyl Joust and TRF (Mortal Kombat style fighting game - I didn't know actual MK-II was in the works?) got shelved.
(Slashdot posting by the programmer)

Coming attractions for Atari Jaguar
SUNNYVALE, Calif. - Jan. 6, 1995 - Batman Forever, Thea Realm Fighters and Primal Rage top the list of coming attractions for the 64-bit Atari Jaguar Interactive Multimedia system in 1995. "The focus at Atari for 1995 is great software and lots of it," said Sam Tramiel, CEO of Atari Corporation. "We are working with over 200 developers to bring a wide variety of new games to the 64-bit Atari Jaguar in 1995. The powerful Jaguar technology can handle popular arcade games like Primal Rage or provide the speed and graphics necessary for brand new games like Batman Forever and Thea Realm Fighters."
Thea Realm Fighters combines the latest digital motion capture technology and nationally known martial arts fighters, including several used for both Mortal Kombat games, to create a super-realistic fighting game. Among the well-known martial artists used for the game are:

  • Ho Sung Pak, who played Liu Kang in Mortal Kombat I & II, is a member of the Black Belt Hall of Fame and winner of the Grand Slam of Martial Arts in 1991, and served as technical advisor for choreography.
  • Phillip Ahn, MD, is a 4th degree black belt in Tae Kwon Do. Dr. Ahn played Shang Tsung in Mortal Kombat II.
  • Katalin Zamiar played Kitana, Mileena and Jade in Mortal Kombat II. Katalin is a black belt in Okinawan style Karate.
  • Daniel Pesina, who played Johnny Cage and the ninjas in Mortal Kombat I & II, is a nationally ranked martial artist in forms and weapons.

There are a total of 25-plus characters to compete against in Thea Realm Fighters, including twelve main characters and twelve other special characters. The characters can compete in four different modes and with more than 30 different backgrounds, creating a wide variety of combat situations and scenarios. The release of Thea Realm Fighters is planned for the 3rd quarter.
(Atari Press Release 01/06/1995)

=*= Thea Realm Fighters (CD) =*=
As one of 12 digitized fighters, you must defeat all the others before facing SurRaider, a powerful warrior from another dimension. Four or more special moves and two "killer" moves will help you win your battles against hidden SubBosses and 5 secret characters. Defeat up to 21 characters in a single game or SurRaider will conquer the planet and add Earth to his vast empire.
(AEO 4/5)

Screenshots, Pictures:   
(video from E3 1995 Atari Demo tape, AEO tape)