Perhaps a better question is "Could it do it well?", which is somewhat subjective. I mean, a hypothetical port of Final Fight to NeoGeo would include the sound system-- and the NeoGeo sounds a hell of a lot different than CPS1. Would it be better? Depends on your taste. Somehow I don't think I'd really like the results much.
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Try checking the MAME manual at http://docs.mamedev.org
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