Damage correction is changing the damage of a move under particular conditions.
For the purpose of adjusting game balance, most fighting games implement it. Most of these reduce the heft of damage.
The most common cases are:
In 2D fighting games, #1 and #3 are typical; in 3D fighting games, #2 is. However, in 2D games featuring air combos, #2 and #4 are often found.
Damage correction is particularly conspicuous in KOF 2003 and KOF XI; it is particularly mean to many Super Cancels and Dream Cancels.
The underwhelming combos caused by this accounts for the mild unpopularity of these games among some.
In the Guilty Gear series, the damage is, to a certain extent, proportional to the guard gauge. Thus, with even the same combo, if a proper rushdown blockstring is used just before a guard crush, the damage will be higher.
Speedier characters that can do rushdown more easily can, to a certain extent, raise their opponents’ guard gauges more often, so damage correction is applied to adjust the balance in relation to their throughput.