I played through half the story just fine, but about half way through I started having problems, and by the end... I was just leaving the room.

In the fights near the end of the game, the enemy was so impossibly hard. Like the game was just trying to either, show off how awesome it the PS3 is at playing or how awesomely each character can be played. The counters to whatever I did were instantaneous, and most fight as soon as it started the computer would instantly attack and pull non-stop perfect combos until I lost my first HP bar and it reset. But then once I lost completely and hit retry, the computer character would basically just stand still while I pummeled it, like it was done kicking my ass so now it will let me move on through the story.

Anyone else have this issue?

i thought that's what fighting game difficulty was all about also i think you posted in the ios game forum lol