Ok, here's the deal with that game...
It is a sequel to a game that never left the shores of japan known as Namco X Capcom. (Namco cross Capcom)
NxC was to be a great deal of hope to me. I, being a unhealthily obsessed fan of Morrigan aensland of Darkstalkers (even took her last name legally in real life. look up morriganaensland on here, that's my main account) was waiting for this game to come stateside. Sadly, Namco felt that "the fanbase for Namco outside of Japan is too small and not worth exporting the game anywhere but its home".
Capcom was not too happy, as a large majority of their fans were in USA and Europe. When the sequel was to be made, I am guessing Capcom is responsible for getting the large margin of other names on there so that Namco can't cry. Konami, Namco, Capcom, Nippon-Ichi, Atlus, SNK, Sammy (before they went under and were taken over by Xseed so I do not know if Xseed will be on there but let us hope.) and more.
Oh and Flonne IS in it, along with some others. So far announced are the Prinny, Demon Flonne, Etna, and a couple of the monsters from the game whos names elude me at the moment. They use JackKnife as a move, if that helps.
New outfits for some of your fave characters too. Kimono for Morrigan of Darkstalkers as well as this number for our lovely Etna:


Japanese TrailorThe game was a tactical RPG utilizing well-known characters and 2 new Namco characters made for the game (NxC I am talking about). It isn't surprising that at the mention of Tactical RPG Nippon-Ichi jumped onto the bandwagon.
I still pine over NxC almost every day and have been since 2000 (along with Marvel vs Capcom 3 being canceled to make room for Sammy vs Capcom, which also got canceled >.<)
If anyone ever wants to know why I know what I know about games it is simple; I am a 26 YO guy who does not work. I am on disability. I spend a large margin of my money on games. I was born into them as my parents owned an Intelivision (props if anyone here ever played one) and so it is an addiction of mine. When I find something interesting in rumor, I research the ever-living crud out of it.