With *Monster Hunter Wilds* breaking Steam records and the *Resident Evil* series more popular than ever thanks to *Village* and a series of stellar remakes, it’s almost as if Capcom is incapable of failure. But this wasn’t always the case. Less than a decade ago, following a string of critical and commercial flops, Capcom found itself struggling. The company had lost both its way and its audience.
Capcom was grappling with an identity crisis. The *Resident Evil* series, which had defined the survival horror genre, lost its edge after *Resident Evil 4*. Similarly, the iconic *Street Fighter* franchise was reeling from the poor reception of *Street Fighter 5*. These setbacks threatened the very existence of Capcom and its beloved games.
Yet, amidst these challenges, a transformation occurred. A shift in Capcom's game development strategy, bolstered by the introduction of a powerful new game engine, breathed new life into these cherished series. This rejuvenation marked the beginning of years of critical acclaim and financial success, propelling Capcom back into the spotlight.
Resident Evil Lost Its Way
Resident Evil 6 marked a low point for the mainline series. Credit: Capcom
2016 was a particularly challenging year for Capcom. The release of *Umbrella Corps*, an online co-op shooter, was met with harsh criticism from both reviewers and fans. *Street Fighter 5* also disappointed, leaving many long-time fans skeptical of this sequel to the acclaimed *Street Fighter 4*. Meanwhile, *Dead Rising 4*, featuring the return of Frank West, would be the last new entry in that series.
This period represented the culmination of several difficult years for Capcom, starting around 2010. The mainline *Resident Evil* games were experiencing declining critical reception despite strong sales. *Street Fighter* struggled to regain its footing, and other key franchises like *Devil May Cry* were notably absent. At the same time, *Monster Hunter*, while a massive success in Japan, faced challenges in penetrating international markets.
"Many of us started feeling that what the fans and players wanted from the series was getting a little bit separate from what we were making," Capcom developers noted. This sentiment was a far cry from the Capcom we know today. Since 2017, Capcom has consistently delivered hit after hit from its flagship franchises, earning both sales and accolades. From *Monster Hunter World* to *Devil May Cry 5*, *Street Fighter 6*, and a series of critically acclaimed remakes and reboots, Capcom has seemingly mastered the art of game development.
Achieving this success required more than just learning from past mistakes. Capcom underwent a complete strategic overhaul, rethinking its target audience and the technology it used. To understand this transformation, IGN spoke with four of Capcom’s leading creatives to explore how the company managed to recover and thrive.
Founded in 1979 as a manufacturer of electronic game machines, Capcom rose to prominence in the 80s and 90s with iconic 2D games like *Street Fighter* and *Mega Man*. The transition to 3D gaming was marked by the success of *Resident Evil*. Between 2000 and 2010, Capcom successfully modernized many of its classic franchises, culminating in the release of *Resident Evil 4*, widely regarded as one of the greatest games ever made.
Resident Evil 4 is often considered the best in the series. Credit: Capcom
*Resident Evil 4*, released in 2005, is celebrated for its innovative blend of horror and action. However, subsequent games struggled to maintain this balance. *Resident Evil 5* introduced elements more akin to action cinema than horror, such as Chris Redfield's iconic boulder punch. The series was losing its identity, a fact not lost on developers like Yasuhiro Ampo, who had been with the series since 1996.
"Overall throughout the Resident Evil series, we set up different goals, challenges, and things we want to try with each game… But this time, many of us started feeling that what the fans and players wanted from the series was getting a little bit separate from what we were making," Ampo explained.
This confusion led to *Resident Evil 6*, which attempted to cater to both action and horror fans by splitting the game into six playable characters and three storylines. This approach failed to satisfy either group, leaving fans disappointed. Meanwhile, Capcom's efforts to experiment with spinoffs and online co-op further highlighted the company's struggles.
The challenges weren't limited to *Resident Evil*. Following the success of *Street Fighter 4*, the sequel, *Street Fighter 5*, was criticized for its lack of single-player content and poor online functionality. The game's release was seen as rushed and lacking polish, frustrating fans and players alike.
Similarly, *Devil May Cry* faced diminishing returns, leading Capcom to outsource *DmC: Devil May Cry* to UK-based Ninja Theory. Despite becoming a cult favorite, the game's reception was mixed, and the series was put on hold. Other attempts to capture Western markets, such as *Lost Planet* and *Asura’s Wrath*, also fell short. The only bright spot during this period was *Dragon’s Dogma*, a new dark fantasy RPG directed by Hideaki Itsuno.
It was clear that a significant change was needed.
Street Fighter 5, The Lost Cause
Street Fighter 5 was a letdown. Credit: Capcom
By the mid-2010s, Capcom began implementing strategic changes to reverse its fortunes. The first step was addressing the issues with *Street Fighter 5*. Directors Takayuki Nakayama and producer Shuhei Matsumoto were tasked with stabilizing the game and rebuilding trust with fans.
Street Fighter 5 was later improved into Street Fighter 5: Arcade Edition. Credit: Capcom
"There definitely were some challenges within the production of the game, and that was part of the reason why I was brought into the team," Nakayama admitted. "And because we were at a point in development where we couldn’t really make any major pivots or shifts, we had to proceed and move forward in the direction we were currently in, which created constraints on what we could and couldn’t do."
These constraints limited their ability to fully transform the game. Instead, they focused on addressing the most pressing issues and setting the stage for *Street Fighter 6*.
"We just didn’t really have enough time to address some of the problems and challenges we faced in Street Fighter V," Nakayama explained. "And so, with our hands tied behind our backs, we basically had to wait for those ideas to be brought back for the initial conceptual phases for Street Fighter 6, so we could tackle and do things properly for the next title."
Despite the challenges, Capcom chose not to abandon *Street Fighter 5* prematurely. "There wasn’t any sort of sense of like, ‘Okay let’s just end Street Fighter 5 and focus on Street Fighter 6.’ It was more like, while we were working on Street Fighter V, we were trying to figure out what we really wanted to do in Street Fighter 6 content-wise," Matsumoto stated.
The development of *Street Fighter 5* became a learning process, a testing ground for ideas that would be refined and implemented in *Street Fighter 6*. Updates ranged from improving netcode and character balance to introducing new characters, V-Triggers, and mechanics like V-Shift. The ultimate goal was to rediscover the fun in fighting games, which had been overshadowed by the frustrations of *Street Fighter 5*.
"We both realized that fighting games are fun, and when you get used to them, it becomes more enjoyable and something you can essentially play forever as long as you have an opponent to play against," Matsumoto said. "However, one of the challenges that we faced with Street Fighter V is that we felt that there wasn’t a clear pathway that helped guide players to get to that level where they finally feel like they’re having fun and will want to continue playing."
*Street Fighter 6* aimed to be more approachable for new players while maintaining the depth that experienced players loved. By using *Street Fighter 5* as a testbed, Capcom was able to launch *Street Fighter 6* to critical acclaim, marking a significant improvement over its predecessor.
To prevent future setbacks, Capcom made significant behind-the-scenes changes, which were crucial in avoiding the need for extensive overhauls in the future.
Monster Hunter Took Over The World
Monster Hunter's revolution began. Credit: Capcom
Around the time of *Street Fighter 5*'s launch in 2016, Capcom underwent an internal reorganization to prepare for a new generation of games powered by the RE Engine, which replaced the aging MT Framework. This shift was more than just a change in technology; it included a new focus on creating games for a global audience.
"It was a few factors that came together," said Hideaki Itsuno, known for his work on *Devil May Cry*. "The change of the engine and also all teams were given a very clear goal at that point to make games that reach the global market. [Games] that are fun for everyone."
During the PS3 and Xbox 360 era, Capcom had focused heavily on appealing to the Western market, with games like the action-heavy *Resident Evil 4* and spinoffs like *Umbrella Corps* and *Lost Planet*. However, these efforts did not yield the desired results. Capcom realized it needed to create games that appealed to a broader audience, not just fans of specific genres.
"I think that we had that clear goal of just focusing and not holding anything back," Itsuno said. "Towards making good games that would reach people from all over the world."
The transition to the RE Engine and the focus on global appeal were pivotal. *Resident Evil 7*, released in 2017, marked the beginning of Capcom's resurgence.
"I think that we had that clear goal of just focusing and not holding anything back towards making good games that would reach people from all over the world," Itsuno reiterated.
No series better exemplifies Capcom's new global focus than *Monster Hunter*. While popular in the West, *Monster Hunter* was significantly more successful in Japan. The series' success was tied to the handheld gaming market, which was stronger in Japan than in the West.
"20 years ago in Japan, having a network connection wasn't as easy, and there weren’t a huge amount of people playing Monster Hunter online. However, handheld consoles made multiplayer gameplay easy without internet access, and I regard it as a great success that we had players experience the game in this way, which was one of the ways we really wished for them to play and enjoy it, even in that era when online gameplay wasn't easy," explained Ryozo Tsujimoto, executive producer of the *Monster Hunter* series.
The focus on cooperative play in *Monster Hunter* was well-suited to handheld consoles, which facilitated easy multiplayer gaming. However, this approach inadvertently reinforced the perception of *Monster Hunter* as a Japan-centric series, as exclusive content and events were often Japan-only.
With the global improvement of internet infrastructure, Capcom saw an opportunity to launch *Monster Hunter: World* in 2018 on PlayStation 4, Xbox One, and PC. This game was designed to appeal to a worldwide audience, featuring large-scale, AAA console-quality action.
"Our approach to the globalization of the series and Monster Hunter in general really ties into not only the themes that we had going into designing the game, but also in the name of the game," Tsujimoto revealed. "The fact that we called it Monster Hunter: World is really kind of a nod to the fact that we wanted to appeal to this worldwide audience that we wanted to really dig into and experience Monster Hunter for the first time."
*Monster Hunter: World* was released simultaneously worldwide, with no exclusive content locked to Japan. Capcom conducted global focus tests to refine the game's systems and appeal, resulting in changes like displaying damage numbers during gameplay. These adjustments led to unprecedented success, with *Monster Hunter: World* and its follow-up, *Monster Hunter Rise*, each selling over 20 million copies.
"The fact that we called it Monster Hunter: World is really kind of a nod to the fact that we wanted to appeal to this worldwide audience that we wanted to really dig into and experience Monster Hunter for the first time," Tsujimoto emphasized.
The series' success was not accidental; it was the result of careful planning and a commitment to broadening its appeal without compromising its core identity. This approach continues with the latest game, *Monster Hunter Wilds*.
"At its heart, Monster Hunter really is an action game, and that sense of accomplishment you get from really mastering that action is an important aspect of Monster Hunter," Tsujimoto explained. "But for newer players, it's really about getting to that point. The steps involved in getting to that sense of accomplishment is what we're trying to strategize for, in terms of designing for new players. So with World and Rise, for example, we were taking great care to analyze where players got stuck, what was hard to understand, what they were having trouble with, getting player feedback, and also doing our own kind of research into that. And all of that kind of knowledge has impacted how we've implemented new systems into Wilds."
Resident Evil 7 Began Turning Things Around
Welcome to the family. Credit: Capcom
While *Monster Hunter* had a winning formula, Capcom needed to find a way to apply this success to other series. For *Resident Evil*, the challenge was deciding whether to focus on gory action or survival horror. Executive producer Jun Takeuchi made the pivotal decision to return to the series' survival horror roots.
"It was around the time I was working on Resident Evil Revelations 1 and 2. I was trying to test different things, try different approaches," recalled Yasuhiro Ampo, director of *Resident Evil 2* and *4* remakes. "And around this time is when the R&D teams were divided into R&D division one and two. The executive producer of the Resident Evil series, Jun Takeuchi, took command of R&D division one, and he set the core direction that the Resident Evil series needed to go back to its origins, to its roots."
Takeuchi's decision proved correct. *Resident Evil 7* was announced at PlayStation's E3 2016 conference with a first-person perspective trailer set in a dilapidated house. The shift to first-person allowed *Resident Evil* to recapture its horror essence.
"With Resident Evil 7, the executive producer, Jun Takeuchi, made it clear that we cannot underestimate how critical it is for the series for it to be scary and about survival. So he made it clear that Resident Evil 7 would go back to its origins, it would be very cautious with its survival elements. And with that as a basis, then we would try new and different things," Ampo said.
*Resident Evil 7* was a significant success, reinvigorating the series with its focus on survival horror and a southern gothic setting. While not reaching the heights of *Resident Evil 4*, it marked a welcome return to the series' roots.
Capcom did not abandon the third-person perspective entirely. New mainline titles like *Resident Evil 7* and *8* remained in first-person, while remakes like *Resident Evil 2* and *3* offered the beloved third-person view. The demand for remakes was evident from fan projects, prompting Capcom to deliver.
"It was like, ‘all right people really want this to happen.’ So producer [Yoshiaki] Hirabayashi came up with the slogan: ‘Well, we’ll do it,’" Ampo revealed.
The *Resident Evil 2* remake was a resounding success, blending horror, action, and puzzles with the menacing presence of Mr. X, becoming the second best-selling game in the franchise. Following this, Capcom hesitated to remake *Resident Evil 4*, a game still considered modern despite its age.
"As you mentioned, [Resident Evil 4] was still a title that enjoyed some popularity. So there was a lot of internal discussion on how maybe it’s not a good idea. Maybe we don’t need a remake for Resident Evil 4, especially because Resident Evil 4 is a game that is so beloved. If we get anything wrong with the remake, people might be quite vocal about their discomfort," Ampo explained.
Despite the hesitation, the *Resident Evil 4* remake was released to critical acclaim, fine-tuning the balance between action and horror and maintaining the series' survival horror focus.
Horror reborn. Credit: Capcom
Simultaneously, Hideaki Itsuno, long-time director of *Devil May Cry*, sought to reinvigorate the action genre. After working on *Dragon’s Dogma*, Itsuno returned to *Devil May Cry 5* with the goal of creating a challenging yet stylish game, leveraging Capcom's new RE Engine.
The Reason Behind The Change
Capcom's goal was to make the coolest game ever. Credit: Capcom
"I felt like the main trend with action games was to make action games that were very kind," Itsuno admitted. "Maybe, for me, a little bit too kind to the players, lending a hand to the player too much to my liking."
Itsuno's return to *Devil May Cry* after a decade-long hiatus was marked by significant technological advancements. "Technology-wise, there were not just little improvements that you would have when you work on a series consecutively," Itsuno said. "When there’s a wide timeframe, [the technology] changes significantly."
The RE Engine, which powers most of Capcom's current games, replaced the older MT Framework. It allowed for photorealistic assets and more agile development, enabling Capcom's teams to implement changes quickly and efficiently.
"So the original concept for the RE Engine was to allow for a development environment that was less stressful and could help us to make things quicker. Because it’s an internally developed engine, when we needed any additional tools, well, we could ask for them internally. They could be fixed somewhat quickly, internally, and also iterated on," Ampo explained.
This flexibility was crucial for Itsuno, who aimed to create the "coolest" action game possible. The RE Engine's capabilities allowed him to enhance the style and gameplay of *Devil May Cry 5*, making it one of the most successful entries in the franchise.
"Devil May Cry is a franchise that stands on being cool," Itsuno said. "That’s what the franchise is, it’s about being cool. Ever since I took over the series from Devil May Cry 3, I put everything that I, as a person, I considered throughout my life to be cool. Anything I’ve seen on TV, in movies, and comics I’ve read, any sport experiences I’ve had, I try to distill everything that I think is cool into what the game is."
A New Capcom Golden Age
Since 2017, Capcom has consistently released critically acclaimed games, achieving a winning streak of 10 games in less than a decade. This success is attributed to a focus on creating globally appealing games using the technologically advanced RE Engine, which supports various genres seamlessly.
"Capcom is going through a golden era, and, well, now we have to do everything we can so that this lasts one more year, one more year, and every year, one more year," said Tsujimoto, reflecting on the company's current status.
Capcom's mission to create global, mainstream games has not diluted its core identities. Instead, it has expanded its audience while maintaining the essence of its franchises, from the survival horror of *Resident Evil* to the competitive spirit of *Street Fighter* and the unique battle systems of *Monster Hunter*.
As other studios struggle to find their footing, Capcom's strategic changes over the past decade have ushered in a new golden age. The company has not only recovered from its lows but has risen to new heights.
"It’s a very exciting time to be at Capcom right now. A lot of us are able to get excited about what we’re working on and are able to focus on things that we think are fun. So, yes, I guess a golden age may be one interpretation of that," Nakayama affirmed.
Tsujimoto echoed this sentiment, emphasizing the company's commitment to extending this golden era as long as possible. Capcom's journey from near failure to a new golden age is a testament to its ability to adapt, innovate, and thrive in the ever-evolving world of gaming.
