I am kind of regretting buying it. I've been a huge tekken fan since the first one and this is a pretty poor version. The number of characters, the character models, the moves and framerate (in single player and local multiplayer) are all top notch...and that is about where it ends. Music isnt that great, backgrounds are weak (not to mention there are only 8 of them and 2 of those are training arenas) no story mode, only 2 single player modes and one of those is practice, no costume customization (save for palette swapping colors which is locked for each character until you level up their rank...a lot) and wi fi multiplayer is indeed laggy. Most of the matches will have you fighting in slow motion. This really makes juggling difficult unless you make use of the, cheezy, cheap touch screen buttons which you can program with moves and simple combos.
All in all this is definitely not worth the 40 bucks I paid for it. unless 20 of that is for the 3d movie included...which is not worth that much.
Shame on you namco.