Arc System Works Returns to Profitability Following Previous Net Loss

Fighting game developer Arc System Works has returned to profitability for the fiscal year ending in May 2026. The studio reported a net profit of ¥115 million, which marks a major recovery from the ¥803 million in net losses recorded during the previous fiscal year. According to financial reports, the revenue boost came from several game releases during the period, including Double Dragon Revive, Absolum, Daemon and Baby, Dear Me, I Was..., and Goritaire.

Looking ahead, the studio confirmed plans to develop a new fighting game utilizing the cel-shaded art style seen in titles like Dragon Ball FighterZ and Guilty Gear Strive. Furthermore, Arc System Works is working on a project as part of the IP360 program implemented by Japan's Ministry of Economy, Trade and Industry, joining Koei Tecmo in the initiative. Financial reports noted that these figures do not account for the August release of Marvel Tōkon: Fighting Souls, which is expected to contribute to revenues for the 2027 fiscal year.

Meanwhile, the studio is continuing post-launch support for Marvel Tōkon: Fighting Souls on PC and PS5. Project director Kazuto Sekine addressed stability issues that impacted the PC version at launch and apologized for the frustration caused to players. The development team is currently making progress on improvements for the PC version to ensure better stability.

Future updates for Marvel Tōkon: Fighting Souls will focus on making inputs more responsive, particularly when executing moves out of aerial dashes or free flight. Additionally, the team is addressing the frequency of the Assist and Switch systems. Because players have been utilizing Assist actions more often than anticipated, the studio is looking at ways to adjust how frequently players can deploy them during fights while maintaining a chaotic atmosphere.