4CYDE Studios has announced the shut down and removal of their fan game SEGA VS CAPCOM: THE NEXT LEVEL at the request of Capcom.
The announcement was made via a social media post where 4CYDE Studios had the following message to share:
"SVC is shut down because of using Capcom's characters and likeness, nothing else. With any fan game, that's the risk and we have no regrets making the game happen. Thanks to everyone involved in the project. Glad we reached a season 1 release. Overall, stay tuned!"
While no further information has been provided, this turn of events isn't too surprising for a fan game. Despite Capcom and SEGA both generally being okay with fan projects, as the IP owners of these characters, they do have the right to put an end to such projects. In the past, Capcom has stepped in when a fan-developed game comes too close to an existing project, but that does not guarantee a SEGA vs. Capcom game is in the works. On the other hand, Capcom has also officially supported fan projects such as Street Fighter x Mega Man, which they themselves released through the Capcom-Unity platform. Either way, in this case, Capcom has decided to pull the plug, and it is ultimately their decision.
As for the game itself, it was a fighting game inspired by the Nintendo Wii exclusive Tatsunoko Vs. Capcom, and built using the Ikemen GO engine. It brought together major characters from both SEGA and Capcom franchises, including: Sonic the Hedgehog, Vyse from Skies of Arcadia, Beat from Jet Set Radio, Ryu from Street Fighter, Mega Man X and more.
At this time the future of the project is currently unknown, but the developers leaving us with the message to "stay tuned" hints that this might not truly be the end.

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