SEGA vs. Capcom comes to a premature and very unfortunate end.
Over the past few months we posted several updates about the fan made fighting game – SEGA vs Capcom.
Development headed by madxruler, it was a Mugen project that was made up of original models, animation, and voice acting, but according to the latest announcement, the was forced to shut down due to using likeness of Capcom characters.
Capcom themselves have not commented on the issue, and madxruler seems to be moving on, as there was always an understanding that a fan project like this might get hit with a cease & desist.
While Nintendo regularly shuts down fan non-commercial fan projects, it's not something you see too often from Capcom or other companies. This has led to some speculations, with some asking if Capcom did actually reach out to shut down the project in the first place.
Meanwhile, some assume that this could be a sign of Capcom themselves having plans for a crossover fighter, but that seems rather implausible when the company is still focused on supporting the wildly successful Street Fighter 6.