Arc System Works are working on a brand new fighting game property as of a few months ago but it kind of slipped under the radar - EventHubs
Many game development companies, several of them with fighting games under their development umbrella such as Sega, Koei Tecmo and Konami are part of this initiative, and another one which is included is Arc System Works. In the case of Arc System Works specifically, it's explicitly said that it will be a fighting game project — and that it will be a brand new intellectual property, at that. Below, the italicized text is exactly what's described about Arc System Works' mystery fighting game, as translated by myself.
Today, Automaton Media reported that for the fiscal year which ended May 2026, Arc System Works has returned to being profitable after posting a net loss in the year prior.
This in itself is of course good news for the primarily fighting game-focused developer, but there was also another nugget of news embedded in this which appears to have been known for quite a few months already, relating to one of Arc System Works' next projects.
Back in June of this year, a big list was published relating to the IP360, a Japanese government subsidy program led by the Japan’s Ministry of Economy, Trade and Industry (METI) which gives big money grants to Japanese companies to increase the sales of Japanese properties overseas.
Many game development companies, several of them with fighting games under their development umbrella such as Sega, Koei Tecmo and Konami are part of this initiative, and another one which is included is Arc System Works.
In the case of Arc System Works specifically, it's explicitly said that it will be a fighting game project — and that it will be a brand new intellectual property, at that.
Translating the project description from the METI web page, we can gleam some details from what exactly to expect out of this mystery game.
Below, the italicized text is exactly what's described about Arc System Works' mystery fighting game, as translated by myself.
The goal of this project is to create a competitive fighting game which is a brand new intellectual property and shows this studio's characteristic 3D anime style to the world. Through this, as the exclusive IP holders stand out in international competition against other franchises.
To use innovative systems which expands the market to both core and casual players to construct an IP with long-term value.
To be competitive in the market, release for all main platforms at the same time, full localization in multiple languages and integrated video content.
Also, to have a multilateral community which supports beginners but also conducts esports tournaments in order to spread the passion of its users.
Through this subsidiary aid, to firmly establish a presence on the world market with a specifically Japanese form of expression and a valuation which does not shy away from the "Japan brand."
Although Arc System Works have been quite active in adapting other intellectual properties as fighting games in titles such as Dragon Ball FighterZ, DNF Duel and the most recent Marvel Tokon: Fighting Souls, it's actually been a very long time since they brought out a brand new intellectual property for themselves for a fighting game, with the most recent being BlazBlue: Calamity Trigger from almost 20 years ago.
While the Arc System Works of today is quite different from how they were back then, it is an intriguing thought to imagine what something brand new without any pre-established world or characters might look like from them, especially with one having specific focus on being "Japanese."
Personally, I'd hope for something closer to Samurai Shodown or The Last Blade with a high focus on Japanese history, though obviously stylized and with enhanced action. But what about you? Let us know in the comments what you're hoping to see once this mystery project finally gets unveiled.