The Pokemon Company and Bandai Namco have announced Pokkén Tournament, a Tekken-style fighting game for arcades.
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The developers have released a trailer (below) showing off in-game footage of a fight between Lucario and Machamp--it's unclear how many Pokemon characters will be playable.
The game is only coming to arcades across Japan, though it's possible we see some version make its way to other platforms (and possibly western audiences) eventually. Still, it's an interesting idea that sounds more like fan fiction than an actual product, but here it is nonetheless!
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The character models look pretty good, though the low resolution textures on the backgrounds could use some work (the video notes it is not final footage). It seems the Tekken developers are working on the game, not just lending the name and style to the title, given series producer Katsuhiro Harada's presence at a meeting with The Pokemon Company CEO today.