I would ditch the street fighter logo, you could easily incorporate its style into your logo. Instead of red and black colouring how about a bar style gradient. That way you wont have dark spots when its lit up. I would make your characters a little larger. It seems youve pulled them off a white background. If thats the case you need to generate a small glow around them to avoid pixelation. If your using PShop, add a drop shadow in white and then use the recolour brush to change the white shadow to black. It'll make the characters stand out more and hide the "Jaggies". Liking where this one is headed!
My £0.02