I just spent about 15 mins or so on it, but... you get to play as the 3rd against Oro and the 1st and 2nd Hokages.  They went with a more water color look for the game's characters... I don't mind so much and they did a fair job with facial animation(the first game sucked balls at that) Playing as the 3rd is crazy... I was kind of surprised... after fighting the battles with Naruto, Sakura, and Shika it actually felt on a whole other scale.  The jitsu useage is easier(as it should be) and the combo tags are pretty awsome... I could only do one in the demo but I'm sure there are more. I'm picking this game up for sure.

How were the visuals compared to Ultimate Ninja Storm?

^Bad

They are not trying to emulate the feel of the anime... at least that's how I feel... it feels like water colory... but the motion is really fluid and they have facial expressions now... I really though the feel of playing as more powerful shinobi was awesome...

Downloaded this 2 days ago. Animations are good. If you liked the first one, this is a no brainer. You can select English or Japanese voices from the getgo. It was a free download in the first one.

The backgrounds are really really nice and I love the fact that its almost as if you really are exploring in the naruto world but again the character models don't quite seem right although they look much better than the first game.

and having the choice to choose between japanese and english voice actors from the start is a plus!