They said it's not an April Fools also how did they get a hold of the Switch Arcade Stick in the back there?

That does not look like a April fools thing.

Like you said,  this looks like a  lot of effort for a joke.  

Unless it is something they were already working on and got cancelled. 

Back in 2012 they did have a test demo running for a new fighter that featured non CAPCOM EX characters.

EX is my 2nd fav SF series right behind the Vs series, before that one started to be shit starting with MvC2.

You guys will not like what I have to say, this looks like a Switch game from the character models if it's real.

If true, then as cool as this is I'd rather have a different Capcom fighting series to be revived like Rival Schools.