Board Thread:Questions and Answers/@comment-2177268-20150126005003/@comment-4651179-20150206202444

Nothing we should worry about. The appearance of that kid playing the arcade was just a joke.

You're still looking at all of this as if the universe was an actual game. The Marvel vs. Capcom games would be an interpretation/representation of that universe. Is not as if in Earth-616 they were aware of their lives coming out in comic book issues, or how their words appear in balloons above them.

The gameplay, healthbar, combo counter, etc. are just a way in which the Marvel vs. Capcom universe would be represented to us, the real world.

Because of this, in-universe, the characters don't magically reappear after dying.

What you are bringing up is similar as if we considered the Spider-Man from, let's say, Ultimate Spider-Man immortal just because he respawns after dying. In-universe, he's not immortal, is just the way his universe is presented to us.