I think they have to mostly play it safe to cast as wide a net as possible. This film will be a popcorn film, but hopefully a good popcorn film. This film isn't winning any Academy Awards unless it is in the technical categories. Let's just hope they don't have a trailer where nobody looks remotely like the original characters or Gangsta's Paradise is playing in the background. If Skeletor and the special effects look cool, it will go a long way.
Somebody will hopefully blink first. It might occur naturally if either of them has production delays or re-shoots. Bumblebee was definitely hurt going against Aquaman. Despite generally good reviews for Bumblebee, Last Knight made significantly more money. If they hadn't had huge hit movies before those two, Transformers would probably be sitting on the movie shelf for awhile. I think Mortal Kombat has just as high a hill to climb as Masters of the Universe. It is hard to make a good film about a video game that will be well received. Most video game films tend to bomb or underachieve.