New info taken from Sony's website.
 
The No.1 Head-to-Head Fighting game franchise based on Naruto arrives on PLAYSTATION®3 for the first time to reign supreme in the next generation of video gaming. Armed with gorgeous cinematic quality HD graphics, a revolutionary next-gen battle system, interactive multi-dimensional battle grounds and seamlessly explorable world of Naruto, Naruto Ultimate Ninja STORM will capture the heart of any Naruto fan! Your dream to LIVE AND BREATHE THE SHOW will come true!
 
Features:
 
Experience Jaw-Dropping Cinematic Quality HD Graphics: Witness the cinema-quality animation comes to life in high definition. The line between Naruto animation and game graphics will truly disappear!  
 
Roam Freely On Dynamic Multi-Dimensional Battle Grounds: Prepare to battle on robust, multi-dimensional battle grounds. Take advantage of the unique characteristics of each battle field! Battle is no longer limited to flat ground surfaces.  Interessant, zone de combat utilisant tous les reliefs du décors ( marcher sur les murs etc )
 
Unleash Your Ninja Dream Team: Form your own three-man dream squad to battle your opponents! Unleash your allies to defend you in battle, or order them to perform cooperative attacks against your opponents!  
 
Discover A Brand New Mission Based Adventure Mode: Challenge a total of 100 compelling missions in Ultimate Mission Mode and experience the original animated TV series storyline up through the Sasuke Retrieval Arc!  
 
Unleash Massive Secret Techniques on An Unprecedented Scale: Using the power of the PLAYSTATION®3, you can now destroy your enemies with bigger, meaner, stronger and more cinematic secret techniques than ever before!  
 
Master 25 Fully Transformable Warriors: Behold your characters transforming into powerful superior warriors in battle! All characters will possess amazing power that will expand the very scale of a battle to the next level!

From what we've seen so far, the development team is making excellent progress with the title. We were able to see the game running and the characters, environments and animations looked stylish and strikingly fluid. We could tell that a lot of effort was put into the game thus far and there is clearly a great deal of passion in the team. "I think our team is probably -- throughout the whole entire world -- the number one fan of Naruto," says Matsuyama. "We follow the actual creator of the series."
 
Matsuyama started off the demo by explaining the game as a whole: "one of the goals or themes that we had when we decided to make the PS3 product was to get rid of the barrier between the anime and what the game actually offers, so that we meld them together in a very natural sense. So users have the experience as if they're partaking directly in the anime series." Although we only got to see a few normal style battles, the content looked like a lot of fun. Characters moved quickly and could dash, flip and jump with ninja-esque grace. The build that was presented to us had a very straight-forward layout: the circle button was used for attacks and the X button was for jumping. But basic combat wasn't the only thing going on in Ultimate Ninja Storm.
 
Not only will you be able to execute normal attacks and various jutsu abilities, but Matsuyama demonstrated that you can hit either R1 or L1 to briefly summon another character into the action to assist you. For example, choose Sakura before the match begins. When you hit the corresponding trigger, she'll flip down, rush towards your opponent and dish out some serious damage. Although each assist ability is based on a timer, you can string your own attacks together with your teammates to create some vicious combos.  
 
We were also impressed and excited when Matsuyama knocked his opponent back and he went flying against the wall -- only to flip around and run along the wall to escape. Matsuyama's character did the same and thus the battle took place on an entirely new plane, and the camera kept track of the action quite nicely.
 
But battles aren't the only experiences you'll have with Ultimate Ninja Storm. The primary story mode will feature Konoha village as a primary hub and give players the ability to select missions ranging from battles to mini-games -- even boss fights will be accessible. We were impressed to learn from Matsuyama that the game will loosely follow the events of the first 135 episodes of the anime and touch upon key plot points contained within.
 
The demo ended with Matsuyama showing us one of the game's first boss encounters: Naruto facing off against Gaara and a massive sand beast. The scale of this battle was incredible and Naruto had to leap out of the way of tremendous strikes from the creature. The battle was broken up between free-roaming sections and quick-button events similar to God of War. However, the implementation of these events was excellent and seemed to vary the action perfectly as opposed to detract from it. Naruto even summoned his own creature to face his enemy, and the results were spectacular. We can't wait to see what's in store for us later in the game.  
 
As the demo ended, we asked Matsuyama if there would be any online attributes to Ultimate Ninja Storm. "Unfortunately, we don't have any individual online matchmaking modes for the game, but we will be planning downloadable content that will hopefully compensate for the lack of that feature. We'll make sure we have something interesting for the downloadable content, don't worry."
 
We won't worry. It seems like CyberConnect2 has a very promising game on its hands
http://uk.ps3.ign.com/articles/867/867121p1.html