>>42620781Because 3D allows for inherently more dynamic presentation with camera movement and more animations per creature. Sprite work is extremely costly and extremely time/resource consuming, especially in HD where it is effectively near impossible to push the format to its limit anymore on anything resembling a reasonably scoped budget.
This is why even the few remaining companies that were doing sprites in the 10s and were the last bastion for modern usage of sprites, such as Arc System Works, have begun changing all their major IPs into 3D games. In fact, ASW has specifically been praised for their move to 3D being so seamless because it's simply so much better and more reasonable to attempt to emulate 2D in 3D like modern Guilty Gear does. Pic related.
The only companies still doing large scaled "sprite based" projects, arguably, are things like Vanillaware. And they're not sprite art and animation in the sense most people mean because they're 2D art assets using tweening animation. Something Vanillaware only really gets away with because of their high detail artstyle, and that would look cheap in most other cases.