Storyline
It seemed to me that you do control sprites good already and from now on you need to improve storyline. People saw many sprite movies and beside the small Special FX you can manage to come with, the storyline will change all the perception for many.
Ken starts of from Mario Bros. and then get in a game (i can't remember which) that looks SO much like Street Fighter graphic style. The effect is bursted. And the movie looked like it finished on a punch that was not really a punch. Anyway, I voted 3. Keep working, I bet you can get to do something great!