Update - Kane Kosugi's official site has reportedly updated with an apology and correction, stating he won't be starring in a Tekken movie but rather a separate film titled Agent X. This raises questions regarding the purported Tekken movie itself. Shacknews will update as more information becomes available.
Original Story - There's a new Tekken movie in the works--and it's going to be a prequel. Production company Crystal Sky has reportedly found a title, a lead actor, and even a fairly respected martial arts director to helm the movie.
Cinema Today (via Kotaku) reports that it will be titled Tekken: A Man Called X. It will feature martial artist Kane Kosugi in his first starring role, after having had smaller parts in Godzilla: Final Wars and DOA: Dead or Alive. It's also being directed by Prachya Pinkaew, the director of the well-regarded martial arts film Ong-Bak: Muay Thai Warrior.
These sound like promising signs for a martial arts flick. The first Tekken movie was largely panned, receiving only four critical reviews on Rotten Tomatoes--all of them negative.