Yes, Tekken x Street Fighter is still in development
Tekken x Street Fighter is still in the works, we just still have no idea when it's coming out.
This is according to what producer Katsuhiro Harada said during San Diego Comic Con today, reiterating previous assurances the fighter hadn't been cancelled.
Harada said via Polygon his teams have many games in development such as Tekken 7, Soulcalibur: Lost Swords and Rise of Incarnates, so not only is challenging from the team from a marketing standpoint, but time as well.
"It is proceeding. It hasn't been canceled, so please relax," Harada said, adding development is "still moving forward."
Last we heard anything on the game was back in February, when Tekken x Street Fighter was noted on Bandai Namco’s 2014 release schedule.
Tekken x Street Fighter was announced at Comic Con in 2010 alongside Street Fighter x Tekken.