This area called Meteor Storm or sometimes Meteor Storm Arena, is new and introduced to Mortal Kombat: Armageddon. It is rumored to be a remake of The Pit II stage from Mortal Kombat II.
The battle begins on a top platform, with large, fiery meteors falling and crashing nearby constantly while kombatants do battle underneath a vile sky. A player can knock their opponent off of the edge of the top platform, sending them crashing through a bridge and finally landing on a lower platform where the fight continues. However, the lower platform is located near jagged rocks with a bridge over top of them, fueling the Pit II rumors.