Virtua Fighter Kids is a super deformed version of Virtua Fighter 2. Reportedly, the game was developed to practice on the facial and eye animations on the characters for the impending Virtua Fighter 3.
All the characters all have big heads, and the music is a faster pace. The gameplay itself is slightly tweaked from VF2. The Saturn version includes some new FMVs and adds programmable button sequences to allow players to test and use pre-made combos. In some versions of Virtua Fighter Kids players could "eat the souls" of other characters. Virtua Fighter Kids characters are not children - 'Kids' refers to the super-deformed' art style, and as such some of the fighters retain adult characteristics, such as facial hair or breasts.
One of the variations of the boss character, Dural, featured her with a fishbowl for a head, complete with a fish swimming inside. One very special addition from all the other VF games is that this game had ending movies that you could access when you beat the game as a character