These do seem to be humans remoting in.
apparently, knocking your block off doesn't end the fight. I can hear Tom Hanks: "There's no running around with your block off in Rock'm Sock'm!"
If you think about it, they probably aren't going to hurt each other much with basic kicks and punches, especially since they don't really seem to be aiming very well. They're not going to weaken or tire after getting hit like humans do. So they might as well go all out and hope they knock off a limb, which seems to have worked well in this case.
as with all corporate stuff, it's overpriced garbage
That'd just be MMA with extra steps
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