Here's the article from IGN.com:

February 29, 2008 - At this year's GDC, we managed to get some hands-on time with Street Fighter IV. The two arcade cabinets at the show had been sent from the AOU Amusement Expo and featured the eight classic World Warriors in addition to the newly announced characters of Abel and Crimson Viper. Now, it appears that roster has grown by two. According to video that has appeared on YouTube today, both Sagat and Balrog are clearly visible battling Zangief in the arcade version of Street Fighter IV.

Taken from the Taito Center in Akihabara, the first clip shows Sagat fighting Zangief on a stage that looks reminiscent of Balrog's Las Vegas backdrop from previous Street Fighters. Sagat still has access to his Tiger punches, and while he never used a Tiger Uppercut in the video, he did fling a lot of fireballs. According to the poster on YouTube, Sagat is currently the final boss of the game, and after you beat him in the arcade you get a "Thanks For Playing" message. Balrog, on the other hand, appeared to demonstrate many other moves, with shoulder charges, dash punches and uppercuts, and other aerial strikes. He appeared to attack Zangief on a stage that resembled the deck of a ship, which looked like a Junk.

We contacted Capcom for a statement about the discovery of these two fighters, and a representative confirmed that the two included characters were AI controlled and not selectable by players. The arcade machines were being used as a location test for the company, and the two characters were included as a part of that test.

"We're excited about Street Fighter IV," the rep said. "We expect it to be an awesome arcade experience."

We'll have more details on Street Fighter IV as soon as it becomes available.

 

Here's the links to the You Tube video's. Sorry but I tried embedding them and it wouldn't work for some reason.

 

Sagat

http://www.youtube.com/watch?v=5-ZMQ7ZlCqA

Balrog

http://www.youtube.com/watch?v=kfpXh2r72HM

This is just plain awesome. The roster is looking better and better.

 

 

 

I'd seriously doubt they'd leave out any of the original 12.

I think they left a lot of the original 12 for SF3 cant rember how many apperared as its been years since i played it, Could of done with them leaving out Balrog he was a boss but one of the easiest to beat regardless of difficulty

http://www.gametrailers.com/player/usermovies/183356.html?playlist=featured

 

 

Kasz216 said: I'd seriously doubt they'd leave out any of the original 12.

Chronologically, SFIV takes place after Super Street Fighter II Turbo, and Bison dies at the hands of Akuma in that game, as per the storyline. Don't expect him to be back, unless they're going to explain how it is he does come back from Hell.

 

Onyxmeth said: Kasz216 said: I'd seriously doubt they'd leave out any of the original 12. Chronologically, SFIV takes place after Super Street Fighter II Turbo, and Bison dies at the hands of Akuma in that game, as per the storyline. Don't expect him to be back, unless they're going to explain how it is he does come back from Hell.

 Oh i'm sure they will.  Likely his "Psycho Power" will infect someone else and we'll get an almost exact clone who may be a little faster or a little stronger.

Kasz216 said: Onyxmeth said: Kasz216 said: I'd seriously doubt they'd leave out any of the original 12. Chronologically, SFIV takes place after Super Street Fighter II Turbo, and Bison dies at the hands of Akuma in that game, as per the storyline. Don't expect him to be back, unless they're going to explain how it is he does come back from Hell.   Oh i'm sure they will. Likely his "Psycho Power" will infect someone else and we'll get an almost exact clone who may be a little faster or a little stronger.

I hope they do. I'm not a fan of using Bison, but I'm a fan of including him in the game. He makes for a great boss fight. Personally, I could care less about the story and wouldn't give a crap if they messed the chronology of it up just so the best of the best characters can appear in this game. I really hope Capcom takes advantage of DLC by adding in new character packs and stages continuously after the game is eleased, maybe starting 6-9 months after. It could save us the trouble of having to have continuous tweaks to the engine and a few new characters and calling it a new game.

 

Onyxmeth said: ... Balrog ...

You mean that Shadow and Fire creature from Lord of the Rings?

That would be awesome! 

I had hoped it was the Balrog from LotR, but it appears not

is Dhalsim in the game ???