While Street Fighter: The Movie itself was a bad idea, the idea for Capcom and Acclaim to make a video game version of the movie was downright idiotic. They first made the game in the arcades, and then ports to Sega Saturn and PlayStation followed later.
What makes this different from the rest of the Street Fighter series is that is used real-life footage of the actors and they are meshed with the graphics. Which is ironically a move that the rival series Mortal Kombat made staple.
While the game was still sorta-developed by the same folks who made the first couple games we know and loved, this game didn't play as smoothly. Cheap A.I. opponents, and hard-to-pull-off special moves were a big reason from what I hear. Most compare it to a bad Mortal Kombat clone than a real Street Fighter game.
I still can't get over that this is Street Fighter: The Movie: The Game. Imagine if you got the strategy guide then it would be Street Fighter: The Movie: The Game: The Strategy Guide. Well at least Capcom learned their lesson, and Street Fighter never got too many awful spin-offs after this.