Sega announced the movie would be in production at Stories International, alongside movies and tv shows based on several other Sega IP, back in 2016.
https://variety.com/2016/film/asia/altered-beast-streets-of-rage-sega-movies-shows-1201933661/
Since then, very little has been heard about any of these projects until now. John Wick creator Derek Kolstad will be writing the script, and co-producing the movie with Toku Nakahara (one of the producers on Sega's recent Sonic live action movies).