I don't really consider this place as a professional community (copyrights are broken daily here) so I'll ignore the law bit. We can make a Naruto game, no problem with that specifically. We have, albeit deprecated, "Street Fighter" type games here.
The problem is, we don't have any Naruto models. Maybe you could find some that we can download? The other problem is, because Alice does not support bones and IKs, it just won't look quite as nice as your PS3 game or whatever. Also, you might want to know beforehand there's probably not going to be any kind of transforming going on.
Perhaps something
like this?