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This trailer was first shown at Square-Enix’s secretive DKΣ3713 event. Lots of things surprised me about the gameplay footage here. First, it’s a fully 3D fighting game (no sidestepping like Soul Calibur or Tekken), and second, it features impressive aerial pyrotechnics, looking like a fantasy-themed Vitrual-On.

The two characters shown are Onion Knight and Cloud of Darkness, who are able to cast many spells and even undergo some transformations. Cute old-school menus and lots of tiny numbers liven up the RPG-flavored display. If this game actually plays anything remotely like Virtual-On, I might just have to give in and buy a PSP.

[Siliconera] [Gamekyo]