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Ok, it's not called "Virtua On" and it's not by Sega, but it's surprisingly close.
It's called Last Legion UX
It's a blatant Virtual On clone complete with mech fighters, 3-D fighting in different enviroments with varied structures to navigate around, and even an obvious copy of Virtua On's launching sequence before battles. It came out in 1999 and was never released outside of Japan.
Note... this game IS NOT as good as Sega's arcade/Saturn fighter, but it's much better than a lot of the Nintendo 64 imports that I have tried and disliked (Evangelion, Sumo 64, Irritating Stick.) The graphics aren't as good as Saturn VO, the control isn't as precise, the gameplay is not as deep, and the total package lacks polish. But it plays surprisingly well.
One player games aren't bad... you can set your computer opponent's aggressiveness/intelligence to range from wimpy/stupid to downright hostile/devious.
Two-player games are damn fun. Me and a friend played this game for several hours last night even though we had a perfectly good zombie movie just waiting to be watched.
You can choose from a variety of robot mechs, just like VO. You can also choose your level of weaponry (slow but powerful long-range, faster yet less powerful projectiles, weak but fast gunfire, up-close sword/ram attacks that are hard to do but inflict major damage, plus a variety of bombs, grenades, and missiles.) You can choose your level of shielding that may offer more protection than other types but will slow you down. Some meches can fly while others are too heavy. You can also find special power-ups that will make your weapons kick ass.
There's even a story in there somewhere, but I sure as hell can't read or even mildly understand any of it.
The graphics are not impressive. This game's developer, Hudson Soft, wasn't particularly good at programming the N64 (Hudson did the atrocious Dual Heroes, the fairly ugly Bomberman games, and the well-received but hardly graphically ambitious Mario Party games.) They continue their tradition of graphic underachievement with Last Legion UX. Battlefields are sparse, character models aren't very detailed, there's plenty of slowdown when you win a battle, and the camera goes nuts once in a while. Explosions are your standard N64 "expanding red half-spheres", but at least the smoke effects are good. You can play in split screen horizontally or vertically, and you can even duke it out 2-D style in closed arenas. The closed fights are pretty lame, but it was a nice touch.
It never ceases to amaze me how some developers were able to really work the N64's hardware (Nintendo, Rare, Ubisoft, occasionally Midway) while others never quite got it right (Konami, Atari Games, Iguana) and still others just flat-out sucked at N64 programming (Bandi, Titus, Kemko.)
I firmly believe the N64 is stronger than either the PSone or the Saturn when it comes to 3-D... take a look at the Zelda games, Conker, Turok 2, Rayman 2 for proof. Yet in the hands of an untalented or lazy developer, the N64 was more than capable of producing some spectacularly ugly games (Superman 64, Carmageddon, Power Rangers, Dual Heroes.)
The music ranges from decent techno to painfully awful easy-listening (especially in the story mode.) Nothing notable, to be sure.
All in all, I have to wonder why this game wasn't brought over to the States. It's certainly better than a lot of N64 games, and the N64 was sorely lacking in fighting games. Is there a domestic Nintendo 64 game that has gameplay even slightly resembling that if Virtua On?
I recommend this one. Playing imported games on the N64 is super-easy with a cheap pass-through convertor, a Gameshark, or even a hacksaw to your N64 (how cheap are these things, anyway? I found a red one with Mario Party 2 at a thrift store for $12. I sold the game for $15, so I basically paid -$3 for the console.) The N64 has some worthy import-only games, and this is one of them.