On May 14, 2025, Arc System Works addressed rumors of a data breach in a statement on its official website, following reports that Dexerto broke the story last Saturday about a hack involving data leaks concerning Switch 2 game formats, Guilty Gear Strive, and in-development games. The company confirmed the data breach but assured users that, as of May 12, there was no confirmation of leaked personal or player account information due to unauthorized access. Arc System Works is collaborating with external experts to investigate the breach's cause and the extent of the data leaked and cautioned against accessing leaked data due to malware risks. However, the company did not comment on the content of the leak itself.

According to Dexerto, the leaked data included a Guilty Gear Strive build featuring remaining Season 4 characters, new moves, and the complete Season 5 character lineup. Nintendo Everything reported that the leak also contained details about three formats for the upcoming Nintendo Switch 2: digital download only, a Game Key-Card, and a 64 GB physical game cartridge containing the full game. The Game Key-Card, codenamed “Potion,” is described as a digital/physical hybrid, requiring a download despite being distributed in a physical box.

The Game Key-Card format appears to be a popular choice among third-party developers for Switch 2 games. The reliance on downloads has raised concerns among video game preservationists regarding the long-term accessibility of Switch 2 games. Daniel Ahmad from Niko Partners noted that Game-Key Cards may strain the eShop upon the Switch 2’s launch in June, as many fans will download their games. He explained that the higher cost of game cards compared to discs, coupled with publishers' higher margins on digital and lower capacity cards, incentivizes the use of the Game-Key Card format.

The leaks also revealed information about a new Arc System Works game for the Switch 2, codenamed Watari, with a tentative release date of November 25, as revealed by XOXLEAK on X.