this is actually the first time I've heard of this, and I'm shocked. That... sounds... terrible. And I'm a huge MK fan up to this day, and while the last one was considered the last one, we all knew much like when a rapper or actor retires, we all knew we'd see a new one. But this... man. I stayed true to MK even when they gave everyone one fatality in whichever sorry attempt that one was, but I have big doubts about this given this info. They should have kept this a secret till they could show some screenshots at least.
Even I'll admit that it's ironic that Midway is named Midway, cuz that's how far they ever finish making a game: midway.