We ran across this interesting video in which Pain is demolished by Sage Mode Naruto in the Naruto Shippuden: Ultimate Ninja Storm Generations demo. Sage Mode Naruto actually transforms into Six-Tails mode and then with 2 swipes and 5 consecutive blasts Pain’s health bar runs out.
Note: This is the demo featuring a sequence from the game’s story mode so while it may not necessarily work online, it will surely be worth a try!
Naruto Shippuden: Ultimate Ninja Storm Generations is a 3D fighter in works by CyberConnect2 for the Sony PlayStation 3 and Microsoft Xbox 360. It will have a revamped online mode, 75 playable characters, and at least 38 stages. The game is scheduled to be published in Japan on February 23, 2012, North America on March 13, 2012, and March 30, 2012 in Europe. For more information, please visit the Naruto Shippuden: Ultimate Ninja Storm Generations section.