Nintendo made a game that uses the Nintendo DSi’s camera to create characters called Photo Fighter X last year. Seems like Nintendo will bring it to other regions under the name Photo Dojo.
You start Photo Fighter X or Photo Dojo by taking pictures in different poses and picking a fireball. This guy’s fireball is a giant fist, but you can create whatever you want. Then you can bring your photo fighter into a side-scrolling beat ‘em up or fight a photo friend in versus mode. This isn’t a Street Fighter replacement, but Photo Fighter X is a neat toy to play with.
And Australia might be creating photo fighters soon since the OFLC rated Photo Dojo with Nintendo as the publisher.