Hilariously bad
First off, improve the graphics. Add a background and improve the animation. Most of this is just the Mario Bros. being tweened into each other in Purgatory.
Second, compress the audio because it would take less time to load and takes up less space. I've seen longer and more animate sprite animations with much lower file sizes.
Third, have a good reason why they fight other than video game characters battling for the sake of video game characters battling.
Fourth, read tutorials and carefully examine some of the better sprite movies if you plan on making something else like this.
Oh, and the zooming at the end is priceless XD