Yeah, it's just a normal arcade/tourney mode that most fighting games have though.
That was never confirmed. Proof? Watch this
Hate to tell you this, but it WAS confirmed. Both Seth Killian and Omar have said in interviews that the story mode will be a normal fighting game arcade mode with cutscenes between fights. Hell, they've been known to use "story mode" and "arcade mode" interchangeably.
Ignore that early footage. Much of that was scrapped. We're not getting a Subspace-style story mode.