Board Thread:M.U.G.E.N Discussion/@comment-33571058-20160723041019/@comment-3495717-20160723174359

Indexed to 256 colours using just the colours of the character, which would allow for people to open the colour table up and switch the colours, or whatever the equivalent in FF3 is.

It also makes your life easier because it wouldn't take as long to import the palettes as the colours would already be in the right order.