The v1.08 update introduced systemic changes aimed at reducing the frequency of match timeouts and rewarding aggressive play.
According to Capcom and Polygon , the v1.08 update introduced:
: Addressed major glitches for characters like Kazuya , Kuro , Xiaoyu , and Pac-Man .
Version 1.08’s secret weapon was a complete overhaul of the netcode. While 1v1 matches still used delay-based netcode (mediocre by today’s standards), the chaotic 4-player mode now uses a deterministic lockstep system that actually works. For the first time, four players across two PCs could play without desyncs—a miracle for its era.
Then came v1.08.
The conflict begins when a strange, cubical object of unknown origin crash-lands in the frozen wastes of Antarctica