Are you drooling at the thought yet?

Capcom vs Sega

This is a rumored game supposedly going to be shown sometime during the TGS. We'll see within the next couple of days.

http://www.nintendoeverything.com/?p=4655

...Does Sega have any franchises other than Sonic?

nights and phanzir dragon or what ever it was called again.

Im not really digging the thought of a sonic fighting game considering how the last two came out (sonic the fighters, sonic battle)

For some reason, I always forget about NiGHTS...must be because it was on the Saturn...yeah. Panzer Dragoon was fun...but did it have a story or any characters? I can't really remember.

Ummm, shouldn't this be a console real-time fighting game?

Honestly, the thought of Sega characters fighting against Capcom characters in an RPG style combat sounds very uninteresting. Unless it's meant to have a full story.