ftfy <3
But anyway, what does the engine actually do?
To answer a little more specifcally than Cellsai,
Mane6 did an old post about the things that the Z engine should let them do that they weren't able to do before. I'll just post a couple of choice ones here:
-Widescreen/HD resolution support, AKA the game won't be hardlocked to have 640x480 resolution.
-Negative Edge and multiple button special moves, AKA hopefully supers won't be double quarter circles anymore and now they actually CAN do EX moves because the engine can handle
pressing two buttons at the same time.
-Can actually use GGPO, as opposed to Fighter maker being left in the dark on that. They'll still have to licesnse it or something probably I think? But I'd pay for GGPO.
-Go from no Training mode at all to having the possibilities of the Skullgirls training mode, quite a big step up.
-Frameskip that accepts inputs on skipped frames to help with dropped combos and help eliminate unblockables (yes there were some of these in there before).
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Actual source code and development tools, so that they can actually code and fix problems with the game instead of just having to do work arounds with Fighter Maker which they couldn't open up and look at the code with.
Its almost impossible to do this now, but if you could look back at the development of the pony game, you'd see soooo many times in the game where people would ask, "Why doesn't the game have X basic feature?", and the devs would frequently say, "Well, this is made in Fighter Maker, which doesn't let us do that". While the engine won't have impact on the animations or the character gameplay designs specifically, it opens up a lot of doors in terms of development just to have more possibilities than before.