Tekken x Street Fighter is no longer in active development
Tekken game director, Katsuhiro Harada, announced via Gamespot that Tekken x Street Fighter (TxSF) development is on hold. The biggest concern is what would be the ideal time for a release window.
In 2010, Bandai Namco and Capcom revealed a partnership aimed at creating crossover titles featuring their most popular franchises. Both Tekken x Street Fighter and Street Fighter x Tekken were announced at the time.
Capcom's Street Fighter x Tekken (SfxT) was developed with 2D gameplay familiar to the SF series. TxSF was modeled after the Tekken series featuring 3D gameplay. SFxTk eventually saw a release in 2012 and was well received by fans and critics alike.
So what does this mean for fighting game fans?
Harada, attributes this decision to the recent release of Street Fighter V and the soon-to-be released Tekken 7. He believes that the release of Tekken x Street Fighter will draw attention away from these titles. Both are the first of each franchise to be released on the current generation of consoles and stealing the limelight from these them is something the Tekken game director wants to avoid. The success of both of theses games will determine future releases.
It does bare mentioning that Tekken 7 revealed the SF villain Akuma as part of its cast. It's unknown if he'll be the only SF character but we do have an example of a SF character in the world of Tekken as intended.
Tekken x Fighter is on hold for now but it may see active development in the near future.