I definitely remember this regarding SF3, I vaguely recall also that it just wasn't that popular of a SF game.
Street Fighter 3 was on very expensive new 2D arcade hardware that was fragile and not very versatile - unlike a cheaper Neo Geo or CPS2 there were not many games you could swap out - it was basically an expensive dedicated Street Fighter 3 PCB.
It also launched at a time when 3D was the hot new thing taking over everything, and more importantly, Capcom had burned out the market with dozens of fighters in just a few years.
The following is the list of Capcom fighters released to the arcade just between 1997-1999 (list may be slightly off, just based on a quick search):
Star Gladiator
X-Men vs. Street Fighter
Street Fighter EX
Red Earth
Street Fighter III: New Generation
Street Fighter EX Plus
Marvel Super Heroes
Vampire Savior
Cyberbots: Fullmetal Madness
Marvel Super Heroes vs. Street Fighter
Pocket Fighter
Vampire Hunter 2
Vampire Savior 2
Rival Schools
Star Gladiator 2
Marvel vs. Capcom
Street Fighter III: 2nd Impact
Tech Romancer
Street Fighter EX2
Street Fighter Alpha 3
Street Fighter III: Third Strike
Street Fighter EX2 Plus
JoJo's Bizarre Adventure
Street Fighter 3 also never received a timely conversion to a popular console - the first port to a popular/leading console (aka not the essentially DOA Dreamcast) was 3rd Strike on PS2 in 2004 - SEVEN years after Street Fighter 3 first hit arcades, five since 3rd Strike did. Outside Japan it wasn't even released by itself but packaged in Street Fighter Anniversary Collection.
There were many, many, many reasons why it never got public recognition and popularity, none of which had to do with the actual three Street FIghter 3 games themselves.
Yet the only lesson Capcom learned was 'it wasn't enough like Street Fighter II', so now they only make games with as many Street FIghter II characters and derivatives of them as possible.
Street Fighter IV was the exact opposite. It was released to a fighter
starving market. I believe almost any semi competent game called Street Fighter 4 would have done well at that time. Unfortunately that meant even a horrifically ugly, creatively bankrupt outsourced 3D monstrosity called Street Fighter IV was successful.