That wasn't the only problem with KOFXII, though.
There is a glitch which is caused when Raiden and Elisabeth battle it out, and a specific move causes her to go buggy. The next KOFXII patch will address this issue. According to a statement by the game's developer SNK:
This week's launch of THE KING OF FIGHTERS XII represents the culmination of four years of hard work to deliver a rebirth for the KOF franchise, but several key issues have arisen since its release that must be addressed. Rest assured that SNK PLAYMORE is fully committed to supporting the King of Fighters XII community by working to further improve the gameplay experience.
We're pleased to announce that the next software update will address the animation glitch that users have encountered in which Elisabeth's character sprite becomes "frozen" for the duration of the round when the character Raiden performs a specific move on her.
While software update solutions are being devised, we can offer some tips to those users who are experiencing exceptionally poor online performance. First, we suggest limiting the number of players in a room to two, as the addition of a spectator with a slow connection can currently create latency for all users in the room. Also, if your Internet connection is configured behind a firewall using NAT Type 3, we recommend reconfiguring your setup to utilize NAT Type 1 (for PS3) or an "open" setting (for Xbox 360).
Also, we'd like to take this opportunity to explain one feature of the Xbox 360 version. When playing online with the Xbox 360 version of KOF XII, players who continually battle the same opponent in multiple Ranked Matches in the same lobby will not receive additional True Skill Rank Points. This is an intentional decision to keep players from abusing the system to reap massive rewards by preying on one player. If you want to earn True Skill Rank Points, you must make a new room or leave simply leave the room and come back.
SNK will get this game fixed, one a patch at a time.