Arc System Works just dropped a surprise announcement during the PlayStation State of Play Japan event. Damon and Baby, a new twin-stick action game directed by Guilty Gear creator Daisuke Ishiwatari, is coming to PS5, PS4, Nintendo Switch, and PC via Steam in early 2026. The game mixes exploration with twin-stick shooter combat in a way that looks nothing like what Arc System Works is known for.
A Demon King With Baggage
The premise is simple but weird in the best way. You play as Damon, a mighty demon king who’s been cursed to never separate from a human child strapped to his back. The game follows their unlikely partnership through what Arc System Works is calling a heartfelt journey. It’s a stark contrast from the fighting game pedigree the studio is known for, and that’s exactly why it’s catching attention.
The story hasn’t been fully revealed yet, but the teaser trailer shows glimpses of colorful characters ranging from angels to grim reapers. Whatever fate awaits at the end of their journey seems tied to breaking the curse and understanding why these two were bound together in the first place.
Two Gameplay Phases Keep Things Fresh
Damon and Baby splits its gameplay into two distinct phases that alternate throughout the adventure. During the preparation phase, you return to a home base where you power up Damon, learn new skills, purchase equipment, and customize your loadout. This is where the RPG progression elements come into play, letting you tailor your character to match your preferred playstyle.
The exploration phase takes you out into an expansive world filled with enemies, environmental puzzles, and hidden weapons. Each area needs to be cleared by defeating enemies and solving gimmicks before you can progress. The story moves forward as you alternate between these two phases, creating a rhythm that balances preparation with action.
Combat Feels Like a Proper Twin-Stick Shooter
The combat system uses twin-stick controls where you move with one stick and aim with the other, a classic setup for this genre. What makes it interesting is the variety of weapons at your disposal. You’ll start with handguns for close-range combat but eventually unlock machine guns, shotguns, rocket launchers, and more as you explore deeper into the world.
Each weapon type changes your effective range and combat style. Finding new weapons scattered throughout the world becomes part of the exploration hook, encouraging you to poke around every corner before moving to the next area. Boss battles add another layer by incorporating environmental gimmicks that you’ll need to use strategically rather than just blasting away.
Customization Beyond Weapons
As Damon levels up, you unlock new skills that can be mixed and matched to create your preferred build. Whether you want to focus on mobility, raw damage output, or defensive survivability, the skill system lets you customize the action to fit your style. The game also includes outfit options that change Damon’s appearance, which is a nice touch for players who care about visual customization.
Local Co-Op Adds a Second Player
Damon and Baby supports local two-player co-op where the second player takes control of Damon’s canine companion. The dog helps in combat by collecting items, providing support fire, and assisting with exploration tasks. This is offline-only local co-op, so you’ll need a friend on the couch rather than online matchmaking.
The co-op implementation looks genuinely useful rather than tacked on, with the dog having specific roles that complement Damon’s playstyle. It’s a smart way to add multiplayer without fundamentally changing the game’s design around it.
Why This Game Feels Different for Arc System Works
Arc System Works built its reputation on 2D fighting games like Guilty Gear, BlazBlue, and Granblue Fantasy Versus. Even their non-fighting projects like River City Girls and Double Dragon Revive lean heavily on beat-em-up action. Damon and Baby represents a completely different genre pivot toward twin-stick shooters fused with action-adventure exploration.
Daisuke Ishiwatari, the studio’s chief creative officer and the mastermind behind Guilty Gear, is leading this project. During the Arc System Works showcase where the game was first teased, Ishiwatari acknowledged that the game market is tough right now and the studio is looking to diversify. This seems to be Arc System Works testing new waters while leveraging their action game expertise in a fresh format.
The Guilty Gear 2 Connection
Interestingly, this isn’t the first time Ishiwatari has experimented outside traditional fighting games. Guilty Gear 2: Overture was an action-strategy hybrid that divided fans but showed his willingness to take creative risks. Damon and Baby feels like a spiritual successor to that experimental mindset, just in a completely different genre.
Release Window and Platforms
Damon and Baby launches in early 2026 across multiple platforms simultaneously. You’ll be able to play on PlayStation 5, PlayStation 4, Nintendo Switch, and PC via Steam. The simultaneous multi-platform release ensures nobody gets left behind regardless of their preferred gaming ecosystem.
Arc System Works hasn’t announced a specific price point yet, but given the scope and the studio’s typical pricing strategies, expect it to land somewhere in the standard indie-to-mid-tier range. Pre-order information hasn’t been revealed, so keep an eye on official channels as we get closer to the actual release date.
Frequently Asked Questions
When does Damon and Baby release?
Damon and Baby launches in early 2026 for PlayStation 5, PlayStation 4, Nintendo Switch, and PC via Steam. A specific date hasn’t been announced yet.
Who is developing Damon and Baby?
Arc System Works is developing the game, with creative direction from Daisuke Ishiwatari, the creator of Guilty Gear. This marks a departure from the studio’s fighting game focus.
What type of game is Damon and Baby?
It’s a twin-stick shooter fused with action-adventure exploration. You alternate between preparing at a home base and exploring stages filled with enemies, bosses, and environmental puzzles.
Does Damon and Baby have multiplayer?
Yes, the game supports local two-player co-op where the second player controls Damon’s canine companion. This is offline-only local co-op, not online multiplayer.
What weapons can you use in the game?
The game features a variety of weapons including handguns, machine guns, shotguns, and rocket launchers. You find more powerful weapons as you explore, and each weapon type changes your combat approach.
Can you customize your character?
Yes, you can customize Damon’s skill set to match your playstyle and change his appearance with different outfit options. The skill system lets you tailor the action based on how you want to play.
Is this related to Guilty Gear?
No, Damon and Baby is a completely separate IP from Guilty Gear. The connection is that both games are created by Daisuke Ishiwatari, but they exist in different universes with different gameplay styles.
Conclusion
Damon and Baby represents a fascinating experiment from a studio best known for fighting games. The combination of twin-stick shooting, exploration-based progression, and an offbeat premise about a cursed demon king carrying a human child creates something that stands out in a crowded action game market. With Daisuke Ishiwatari’s track record for unique game design and Arc System Works’ expertise in polished action mechanics, this could be the surprise hit of early 2026. The local co-op addition sweetens the deal for players looking for couch gaming experiences, and the multi-platform simultaneous release means accessibility won’t be an issue. Whether you’re an Arc System Works fan curious about their genre expansion or just someone who appreciates quirky action games with heart, Damon and Baby deserves to be on your radar when it drops early next year.