The forces of both companies manifest in the real world, excluding deities such as: Star Spirits, Deku Tree, Fairies, Geno, Asura, Sparda, etc.
Battle 1: Nintendoians and Capcomians manifest in our world with all of their powers, abilities, and equipment (except for Samus and Megaman). Which side can dominate the other without bloodlust?
Battle 2: They manifest on Earth, however, everyone loses all of their powers and abilities (Mario can no longer double jump, Ryu can no longer fire Hadoukens), HOWEVER, their equipment (Samus's suit, Mega Buster) remain. They lackbloodlust, but are given a photograph of each of their enemies. Which side would gain power/control and hunt down the others first?
Final Battle: The two armies battle with game mechanics turned on. They fight on a gigantic World 1-1 Brawl-style, with one army charging at another.