Unlock the following characters by Highlighting the corresponding characters at the character selection screen and pressing the corresponding sequences of buttons:

CHARACTER - HOW TO UNLOCK
Akuma - Highlight Hsien-Ko, then press Down.
Anita - Highlight Donovan, then hold Back + LB + RB and press A.
Bat Morrigan - Highlight Morrigan, then hold Back + LB + RB and press A.
Dan Hibiki - Highlight Donovan, then press Down.
Evilot - Highlight Morrigan, then press Down.
Hsien-Ko's Talisman - Highlight Hsien-Ko, then hold Back + LB + RB and press A.

To unlock alternate attack moves for a character, at the character selection screen, hold LB or RB while selecting a character.

To unlock an all blue counter-drop, at the character selection screen, hold Start while selecting a character.

Highlight a character, then press X to play as that character with their NPC color scheme.

ACHIEVEMENT - HOW TO UNLOCK
Power Made Flesh (6 points) - Akuma in Arcade Mode
Meeting People is Easy (7 points) - Join or Host a 4 person Player Match.
Power Made Flesh (6 points) - Akuma in any mode.
Meeting People is Easy (7 points) - You joined or hosted a Four Player Match.
Get Your Feet Wet (7 points) - Win three Ranked Matches of X or X' Mode.
Playing to Win (15 points) - Win 20 Ranked Matches in X' mode.
Modern Battle Master (10 points) - Beat X' Arcade Mode on Hard or Expert Difficulty.
Classic Battle Master (10 points) - Beat X Arcade Mode on Hard or Expert Difficulty.
Alternative Lifestyles (10 points) - Beat Y or Z Arcade Modes on Hard or Expert Difficulty.
Quarter Miser (10 points) - Beat Arcade Mode without continuing.
The Mother Lode (25 points) - Break a Power Gem of size 25 or larger in Arcade Mode
The Longest Journey (30 points) - Beat X' Mode on Hard or Expert Mode using only Dan.
Chain, Chain, Chain, (30 points) - Perform a 5 chain combo in X or X' Arcade Mode
Chain of Jewels… (40 points) - Perform a 7 chain combo in X or X' Arcade Mode