Great thread OP! Thanks for sharing. This game is up there with 3rd Strike for me as being the pinnacle of 2D fighting games, with Garou perhaps even beating 3rd Strike in terms of stage design and overall presentation (partly due to the stage intro's you mentioned).
Not to depress everyone but I can't help but be reminded of the rumor that SNK at some point had indeed begun work on a direct sprite-based
sequel but then shelved it twice in the following years (the second time after first making a shift to hires sprites in 2006 I believe).
Sources on this are limited, but to quote SNK Wiki: "The game's sequel, tentatively titled Garou: Mark of the Wolves 2, was reported to be in the works on the Neo Geo system several times by Korean news sources. Since 2002, the project has been put on hold and its current status remains unknown. According to Falcoon at the 2005 KOF Party, the game's sequel was around 70% percent complete by the old SNK team. Ureshino reported that a new grappler character and Joe Higashi's apprentice were added to the roster."
Similar info can be found
here (somewhat NSFW due to ads) as well. I also remember reading somewhere that Mr. Karate would be a playable character and that there would be a beach stage included.
There are even some prototype [edit: but apparently fake?] screenshots floating around, such as this one (that indeed seems to show Mr. Karate) found
here:
According to some of these sources, the last we've heard of the title as still being in development was 2008, so chances might indeed be extremely slim that anything will ever happen with this, which I would consider being one of those legendary crying shames in gaming (easily on par with having no Shenmue 3, Rogue Squadron sequel on Wii, etc.).
Just imagine how incredibly great this series would have become if SNK had indeed taken Garou and added content and refinements to it. Sigh, if only we could do something to get them to complete this prototype build and release it digitally.
If there is anyone here working in gaming journalism, please consider doing some digging to find out what happened to this much needed sequel! Maybe that would help set things in motion somehow (BELIEVE).