At the EVO 2012 tournament over the weekend, the publisher revealed that Heihachi Mishima and Toro Inoue would be added to the game.
Heihachi comes from Namco's Tekken series, and retains his classic fighting moves such as his Electric Wind God Fist and Twin Pistons to specialize in close-range combos.
Toro Inoue, more commonly known as the Sony Cat, is the company's mascot in Japan. Toro recently also appeared in Street Fighter X Tekken and brings a unique fighting style to PlayStation All-Stars using a variety of stances.
Sony also revealed a new stage for the game based on the dojo from Parappa the Rapper, which appears to be under attack by Chimera from the Resistance series.
This brings the game's character roster up to ten. It also includes Fat Princess, Sly Cooper, Colonel Radec from Killzone, Parappa the Rapper, Kratos from God of War, Nathan Drake from Uncharted, Sweet Tooth from Twisted Metal and the Big Daddy from Bioshock.
The game will offer single-player and multiplayer modes - including support for up to four players locally - cross-platform play between PS3 and Vita and a number of online tournament options.
PlayStation All-Stars Battle Royale will release on PlayStation 3 and Vita on October 23 in North America and on October 24 across Europe.
Watch the new challenger trailer for PlayStation All-Stars Battle Royale below: