Capcom and Namco Bandai Games have announced that development is underway on two new fighting games, one to be developed by each company, which features characters from both companies' flagship fighting franchises, Street Fighter and Tekken.

Street Fighter X Tekken, to be developed by Capcom, will feature Tekken characters making their debut in the Street Fighter world. Meanwhile, Namco Bandai's Tekken X Street Fighter will feature Street Fighter characters bringing the fight to the Tekken world.

"This is history we're making," said Street Fighter IV series producer Yoshinori Ono. "Two fighting games that have rivalled each other are finally standing on the same stage. This isn't just a showdown between Tekken and Street Fighter, but a decisive battle for Capcom and Namco Bandai Games, so I'm going to give it my all."

Tekken series sirector Katsuhiro Harada commented: "The ultimate dream match-up is about to be realised. With this astonishing collaboration, a new chapter in fighting game history begins. The Street Fighter and Tekken development teams have a great relationship. However, I see this new project not as a collaboration, but as a competition of the century between two legendary fighting game franchises."

Street Fighter X Tekken is in development for Xbox 360 and PS3. The game is based on the Street Fighter IV engine and will introduce two-on-two Tag Team Fighting.

Details on Tekken X Street Fighter are expected soon.