I don't think that would work. I love the game series and am excited for the new movie FINALLY being a Rated-R take on the franchise, but it's just too much kinetic energy. You aren't going to hire martial art experts who can do choreographed fights for 45 min straight. So it would have to be lame fake fighting with mostly "post fatality" scenes. Sure, you could have a triggered GET OVER HERE with Scorpion pulling another character towards them, but that's about as much action as you could get. You could have a Sub Zero do a hand motion and lights click on to a "frozen" dummy or something, but again, there's just not much they can do. What are the scares? Fighters, fighting for their lives, jumping out of boo holes? Doesn't make sense. Just random minions scaring you?
The game is just 1 vs 1 fighting so that makes it hard for scares. Unless the new movie has more of a "story" with situations that scares could make sense. Silent Hill and Resident Evil (I didn't go that year) were videogame adaptations that followed the movies and they involve situations where there are multiple bad guys threatening the protagonists simultaneously. There are also a wide range of baddies. Mortal Kombat, is basically one on one fights with gore. The "monsters" are all basically still humanoid or else the fighting mechanics of the game wouldn't make sense. Not a lot of variety and hard to translate to a house. Hopefully the new movie will prove me wrong.