During a Q&A session at the Tekken 7 panel at San Diego Comic-con, series producer Katsuhiro Harada confirmed that that Tekken X Street Fighter has not been canceled and is still planned.

The game is still in development and is moving forward, but with all of the other products being created, it needs its own spotlight. It isn’t cancelled, so please relax…

Tekken X Street Fighter was announced at Evolution 2010 as a joint project with Capcom who also announced Street Fighter X Tekken. The idea was that each company would develop their own version of a fighting game, one following Street Fighter’s 2D style and the other following Tekken’s 3D style, with access to any character from the rosters of each series. Capcom was the first to develop and release their version titled Street Fighter X Tekken, to mixed reviews and a great deal of controversy.

The controversy around Capcom’s Street Fighter X Tekken started with an advertising campaign where players from the Tekken community and the Street Fighter community faced off in a reality TV style competition before the actual release of the game. During the show, a community member verbally harassed a female member of the cast with sexist comments to the point where she left the show. This did a lot of harm to the victim, the game, and the community as a whole.

The second bit of controversy came after the game’s release and involved Capcom’s poor planning on future content for the game. The game was released with a set roaster and future plans for downloadable content (DLC), which would normally be costumes and new characters. Well, when the game got into the hands of some data miners it was discovered that the not-yet-officially-announced additional character were sitting on the retail disk mostly completed. That wouldn’t have been a problem except for that fact that you had to buy them at a later date. This meant that players had to purchase content that was already on the physical disk that they already purchased. Capcom received quite a bit of backlash on that matter with no real restitution for the players.

Overall, Street Fighter X Tekken is viewed as a failure by the FGC not only in how it was released and the controversy it provided, but also in the playstyle that just did not make the game fun. Most fights would end in time-outs and features varied between the Xbox 360 and PS3 version.

So after that fiasco, it would have been safe to say that Harada would be hesitant about releasing any info about the development of Tekken X Street Fighter. Now that it is still confirmed for development, let’s hope they learn from their rival/friend’s mistakes.

Sources: Siliconera, NeoGAF