It was developed by none other than Midway, released initially on arcades, with the ports handled by Williams.
I remember that I first played it when I borrowed it from a friend of my brother’s years ago. I gave the game back a while later, but I’ve actually still got the manual for it. I was so taken in my the drawings and diagrams in that book that I traced the picture of the new Sub-Zero, the younger unmasked brother of the other Sub-Zero [or Noob Saibot] in it and hung it on the wall in my room.
One thing that many didn’t like about it was that it replaced or simply left out a number of favourite characters in the series, like Scorpion and Reptile, and most of the other ninja like fighters that were present in previous incarnations.
This was remedied when Midway updated the game with Ultimate Mortal Kombat 3, which put those characters back in. I remember playing that one at my neighbour's house years ago. Then after that it was updated for a second time to bring what was considered one of the last great Mortal Kombat games: Mortal Kombat Trilogy. A game that I still have and occasionally play to this day.
It was also more westernized than previous MK titles in character design as well as arenas in the game. Smoke was the hidden character, and was one of three cyborg characters. All of the characters in MK3 were digitized rather than a combination of digitization and hand drawn sprites. The soundtrack also had more of a westernized feel, with instruments sounding like guitars as well as drums.
Animalities were a new addition to series in this game, as well as Mercy.
MK 3 also inspired the second and least appreciated movie, Mortal Kombat: Annihilation, with characters like Stryker and Kabal referenced, as well as others like Rain and Ermac.
If you want to play a classic, you can get Mortal Kombat 3 here at Amazon.