Unfortunately it sees like that may no longer be true. Speaking in an interview with GameSpot, the game’s director Katsuhiro Harada confirmed that the game is no longer in active development. This does not mean that the game has been cancelled completely, but just that gamers should not expect to see the game released anytime soon.
Harada cites the reason behind this as trying to pay attention to the game’s core communities, which is Tekken and Street Fighter. “But currently the situation is with fighting games, you have Street Fighter V that just released — a lot of people are playing that fervently — and there’s a large crowd out there waiting or Tekken 7.”
He adds, “We don’t want to split these communities, so a good window in which to release Tekken x Street Fighter is something that’s become difficult recently. So it’s on hold for the moment.” The only good news is that Harada revealed that the company still has plans to release the game, but they are just waiting for the right time.