Who knows, a MK movie with good production value could be good.
Highly doubtful. Just the basic set up reeks of B-movie. It would take a freaking brilliant writer to be able to turn a plot about a fighting tournament into something good.
Actually let's do a comparison for and against the likelihood of an MK movie to be made:
For:
1. The film would be pretty cheap to make, a budget of 30 million would be enough for the production.
2. The internet buzz generated by the 7 min promo was quite substantial.
3. The first MK film made a boat load of cash.
4. The fact that someone was willing to make a 7 min reworking of MK shows that there is someone who actually wants to adapt the franchise.
Against:
1. Mortal Kombat hasn't been relevant for over a decade and the name inspires little more than nostalgia in the gaming industry today.
2. The Mortal Kombat franchise was not enough to save Midway Games from financial collapse. In fact Midway did try to use Mortal Kombat to save themselves and it simply didn't generate enough capital to save them.
3. Warner Bros. just picked up the rights to the series and are currently funding MK 9. It is doubtful that they would dump more cash into a franchise that has yet to prove itself.
4. The movie industry has learned that internet buzz does not mean anything when it comes to ticket sales. Snakes on a Plane, which had massive buzz online, barely made back it's production budget domestically.
Conclusion:
Frankly it is pretty unlikely that a Mortal Kombat movie is in development. If the new MK game performs well and I mean very well, then there is a chance that a movie will be made. The franchise has simply been out of the public eye for far to long for a movie to come out anytime soon.