Does this game allow you to make games like Namco X Capcom? And can you make cutscenes?

To give you an idea of the specifications of SmileBASIC, it's processing power feels a bit lower than that of the SNES. You can use up to 8MB of RAM. Storage is unlimited, although uploads are limited to 8MB per project, I think. However, even with all these limitations, you are able to create a huge variety of amazing games and programs. I definitely recommend it.

Just be aware that the games you are able to make depend entirely on your developing skills. Making anything relatively complex requires serious effort and skill. There are no included tutorials on how to make a game or how to program. However, there are learning resources for SmileBASIC and you can always ask for help here.

But what about copyright? If you include a character from a real game, is it bad?

In other words, copyright restriction?

Fan game= Game with same characters in it, but not too similar to the original game Game that has different characters in it, pretty similar to the original game (but still enough to make it unique), credit is given for inspiration in the credits area or main menu. Clone game= Same characters, same gameplay, different visuals Reskinned content, no obvious credit to the original author.

Imagine that you are the creator of that game. Would you want someone taking your characters w/o your permission? You should be okay with that, as long as they give you visible credit. Would you want someone taking your full game, making a reskinned port of it on 3DS, and then not giving you any credit for it? You shouldn't be fully okay with that, but it's up to the creator to decide.

Yes, you can make cutscenes.

I have the idea to make a crossover from characters made by the same company, and I will very much give credit.

even if they don't want your game to have their characters, all that happens is that your game gets taken down. then you can just remake it w/o proprietary characters.