Arc System Works Developing New Game for Nintendo Switch 2, Says Leak

Arc System Works is reportedly working on a new game for the upcoming Nintendo Switch 2 console. The game, known by the codename "Watari," is expected to launch later this year.

According to information shared by X0X_LEAK on the social media platform X (formerly Twitter), this mysterious new title is being developed using Unreal Engine 5.4.

The leaker, who has built a reputation for accurate gaming information in the past, specifically mentioned November 25, 2025, as the planned release date.

The news has sparked excitement in the gaming community, but questions remain about what exactly this new project might be. While the leaker describes it as a "new game," gaming enthusiasts have offered different theories.

Some fans suggest that "Watari" might actually be a port of an existing game rather than a completely new title. This speculation stems from the meaning of the word "Watari" in Japanese, which translates to "crossing." This has led to theories that the project could be a cross-over or transfer of an existing game to the new console.

Arc System Works, founded in 1988, has built a strong reputation in the gaming industry, particularly for its fighting games. The studio is best known for popular series like Guilty Gear and BlazBlue, as well as licensed fighting games including Dragon Ball FighterZ and Persona 4 Arena.

Some believe "Watari" might be Persona 5 Arena, given Arc System Works' previous collaboration with Atlus on Persona 4 Arena. Others point to the fact that "Watari" is also the name of a character in the popular anime Death Note, suggesting a potential fighting game based on that franchise.

The use of Unreal Engine 5.4 for this project aligns with Epic Games' confirmation in April 2025 that Unreal Engine 5 would support the Nintendo Switch 2. This powerful engine enables advanced features such as ray tracing and 4K output, suggesting that "Watari" could showcase impressive visual quality.

What makes this news particularly interesting is that Arc System Works typically releases their games across multiple platforms. The decision to make this new title exclusive to Nintendo Switch 2 might indicate a strategic partnership with Nintendo, who may be seeking exclusive content to boost the launch of their new console.

If the November release date is accurate, we might not have to wait long for official information. The game could potentially be announced during Summer Games Fest in June, or Nintendo might hold another Direct around the time of Switch 2 release to showcase more upcoming games for the new console.