When you have a fighting game, you pretty much have the luxury of not having tons of level geometry or characters on screen at once. You can blow your poly budget on the fighters (heck you can make the environments look good too when you have levels that small). Normal mapping will be the 'de facto' solution for lighting, but a model with no normal map (or if the user has normal mapping turned off) will get vertex lighting.

The Witcher
The Witcher uses MAX as their level editor and generates lightmaps (which puts a damper on dynamic lighting solutions). In that respect, their engine is much more like KotOR's engine than NWN's engine. For the type of game they are making, it's a wise decision. We will be moving the Aurora Engine in and entirely different direction. Brian, Jason and Erik have done some amazing things with the engine already that makes me a happy fan of the series.