Tekken 3 was the first Tekken game built on Namco System 12 arcade hardware.
Namco System 12 was an upgraded successor to System 11, the PlayStation-based arcade board used by the original Tekken and Tekken 2. Tekken 3 moved the series to the newer hardware for its 1997 arcade release, while retaining the general PlayStation-derived architecture.
The hardware change helped support Tekken 3's expanded presentation and gameplay. The game introduced a stronger emphasis on sidestepping, a largely new cast, and characters such as Jin Kazama, Ling Xiaoyu, and Bryan Fury. Its later PlayStation conversion was more demanding than the earlier ports because the arcade version used System 12 rather than System 11.
A common mix-up is choosing Tekken Tag Tournament or Tekken 4. Both followed Tekken 3, but Tekken Tag Tournament was released in 1999 and Tekken 4 in 2001. Tekken 3 is the key transition point between Namco's System 11 and System 12 eras.