Arc System Works Rumored to Be Developing Switch 2 Exclusive “Codename Watari”

A new leak suggests that Dragon Ball FighterZ developer Arc System Works is creating a new Unreal Engine 5.4 game, exclusively for the Nintendo Switch 2.
Arc System Works Reportedly Developing a Switch 2 Exclusive Game “Codename Watari”
Arc System Works, the studio behind acclaimed fighters like Dragon Ball FighterZ and Granblue Fantasy: Versus, might be preparing something big for Nintendo’s next-gen console. According to a recent leak, the Japan-based developer is working on a brand-new title—currently dubbed “Codename Watari”—set to launch exclusively on the upcoming Nintendo Switch 2.
The leak comes via X0XLeak, a prominent leaker with a track record for early industry info, and was highlighted in a report from MyNintendoNews. According to the leak, the game is currently being developed using Unreal Engine 5.4 and has a target release date of November 25, 2025. It’s still unclear if Codename Watari is an original IP or a new entry in an existing franchise, but it marks another big step for Arc System Works, especially with how tightly the project seems to be tied to Nintendo’s next hardware.
🎮 What We Know So Far About Codename Watari
- Developer: Arc System Works
- Platform: Nintendo Switch 2 exclusive
- Engine: Unreal Engine 5.4
- Release Window: November 25 (rumored)
- Genre/Franchise: Unknown (original IP or adaptation not confirmed)
🕹 Arc System Works: A Fighting Game Powerhouse
Arc System Works has built a solid reputation in the fighting game community, known for highly stylized visuals, tight mechanics, and genre-defining titles. Aside from Dragon Ball FighterZ and Granblue Fantasy: Versus, they’re also the force behind the Guilty Gear and BlazBlue franchises. But the studio isn’t just about flashy fighters—they’ve also published other hit games like River City Girls in Japan and even own the Double Dragon IP, with a reboot called Double Dragon Revive currently in development with Yuke’s.
🤝 A Growing Lineup for Switch 2
Nintendo’s April Switch 2 reveal stream gave fans a glimpse of what the upgraded hardware can handle—and the third-party support looks strong. Titles from FromSoftware, Square Enix, Capcom, and now possibly Arc System Works are all lined up. Notably, Borderlands 4 is confirmed for a day-one release on Switch 2 in September, and ports of current-gen hits like Elden Ring, Final Fantasy 7 Remake, and Street Fighter 6 are expected to follow.
Whether Codename Watari turns out to be a new franchise or a bold twist on something familiar, it’s clear Arc System Works is aiming to make a splash on the Switch 2. As always, we’ll have to wait for official confirmation—but the possibility alone is exciting for fans of fast-paced, visually stunning games.
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