With Monster Hunter: Worlds shattering Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and several stellar remakes, Capcom seems virtually unstoppable. But this wasn't always the case. Less than a decade ago, a string of critical and commercial failures left the company reeling, lost both its way and its audience.
Capcom suffered a severe identity crisis. Resident Evil, the progenitor of survival horror, lost its edge after Resident Evil 4. Similarly, Street Fighter faltered after the poorly-received Street Fighter 5. The company teetered on the brink of collapse.
Yet, from the ashes, a transformation emerged. A shift in development philosophy, coupled with a powerful new game engine, revitalized beloved franchises, igniting years of critical and commercial success that catapulted Capcom back to the forefront of the gaming industry.
Resident Evil Lost Its Way
2016 was a disastrous year. Umbrella Corps, an online co-op shooter, was met with harsh criticism from both reviewers and fans. Street Fighter 5 disappointed longtime fans, falling far short of its predecessor's brilliance. And Dead Rising 4, despite Frank West's return, proved to be the series' final new entry.
This marked the nadir of a string of underwhelming years stretching back to 2010. Mainline Resident Evil games, while selling well, received increasingly negative reviews. Street Fighter struggled after a poorly-received installment, and stalwarts like Devil May Cry were largely absent. Meanwhile, Monster Hunter, though hugely popular in Japan, struggled to gain significant traction internationally.
This contrasts sharply with the Capcom we know today. Since 2017, Capcom has consistently delivered hit after hit, garnering both sales and critical acclaim. This includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, several industry-leading remakes, and a critically acclaimed Resident Evil soft reboot. Capcom's recent success seems almost effortless.
This resurgence required more than just learning from past mistakes. Capcom overhauled its entire strategy, from target audience to technology, to achieve this remarkable turnaround. To understand this transformation, IGN spoke with four of Capcom's leading creatives.
Founded in 1979 as a manufacturer of electronic game machines, Capcom rose to prominence in the 80s and 90s with 2D titles like Street Fighter and Mega Man, successfully transitioning to 3D with games like Resident Evil. Between 2000 and 2010, Capcom successfully modernized many of its flagship franchises, culminating in the creation of one of the greatest games of all time: Resident Evil 4.
Released in 2005, Resident Evil 4 is widely considered a generational high point, ingeniously blending horror and action. However, this blend dramatically altered the course of the Resident Evil franchise. While fundamentally a horror game, inspired by works like Friday the 13th and H.P. Lovecraft, it incorporated elements of Hollywood action cinema. This balance, unfortunately, was lost in subsequent games.
In 2009's Resident Evil 5, Chris Redfield punches a boulder the size of a car, and infected enemies are gunned down in a car chase more reminiscent of Fast and Furious than a terrifying horror experience. The series' identity was fading, a fact apparent to both players and developers, including Resident Evil 4 remake director Yasuhiro Ampo, a Capcom veteran since 1996.
"Throughout the Resident Evil series, we've set different goals and challenges for each game," Ampo explains. "But this time, many of us felt a disconnect between what fans wanted and what we were creating."
This lack of direction resulted in games like 2012's Resident Evil 6, which attempted to please both action and horror fans. The game's division into three storylines with six playable characters failed to achieve the crucial balance, leaving neither group satisfied. Disappointed fans voiced their concerns online, while developers continued experimenting with online co-op spin-offs.
This decline wasn't limited to Resident Evil. Following the success of Street Fighter 4, its sequel, Street Fighter 5 (2016), was criticized for its lack of single-player content and poor online functionality. Fans pointed to a lack of polish and a confusing approach to balance.
Other key franchises also struggled. Devil May Cry, after diminishing returns, saw its next installment, 2013's DmC: Devil May Cry, outsourced to Ninja Theory. While achieving cult status, its fresh take on mythology and sluggish frame rate alienated fans, leading to the series being shelved.
The early-to-mid 2010s saw Capcom struggling. Key franchises failed to replicate past successes, new titles targeting the Western market underperformed, and only occasional bright spots, like Dragon's Dogma, emerged. Change was clearly needed.
Street Fighter 5, The Lost Cause
By the mid-2010s, Capcom began implementing strategic changes that would transform its fortunes. The first step was addressing the issues plaguing Street Fighter 5. Director Takayuki Nakayama and producer Shuhei Matsumoto were tasked with stabilizing the game.
While not involved from the start, they inherited a game needing significant improvements to regain fan trust. "There were production challenges," Nakayama admits, "and we couldn't make major pivots, creating constraints on what we could do."
These constraints limited their scope. Instead of a complete overhaul, they focused on fixing pressing issues, biding their time until work on Street Fighter 6 could begin. "We lacked the time to address problems in Street Fighter 5," Nakayama explains. "We had to wait for those ideas to be incorporated into Street Fighter 6."
The question arises: why not abandon Street Fighter 5 and start fresh? According to Matsumoto, that wasn't an option. "It wasn't about ending Street Fighter 5 and focusing on Street Fighter 6," he says. "We used Street Fighter 5's development as an ongoing process to inform Street Fighter 6's content."
Street Fighter 5 became a testing ground for new ideas. Numerous updates addressed netcode, character balance, and introduced new mechanics like V-Shift, later refined for Street Fighter 6. The goal was to rediscover the fun, addressing the frustration of the original release.
"Fighting games are fun, and become more enjoyable with practice," Matsumoto notes. "But Street Fighter 5 lacked a clear path to that enjoyable level."
While they could have abandoned Street Fighter 5, Nakayama and Matsumoto understood that would be a shortcut. By using it as a testbed, Street Fighter 6 (2023) launched as one of the franchise's most acclaimed entries.
To prevent repeating such situations, Capcom needed a significant strategic shift. This involved key behind-the-scenes changes.
Monster Hunter Took Over The World
Around the launch of Street Fighter 5 in 2016, Capcom underwent an internal reorganization in preparation for a new generation of games utilizing the RE Engine, replacing the aging MT Framework. This change went beyond mere technology; it involved a mandate to create games for a global audience, not just existing regional fans.
"Several factors converged," says Hideaki Itsuno, known for his work on Devil May Cry. "The engine change, and a clear goal to create globally appealing games."
Capcom's previous efforts often targeted a perceived "Western market," leading to titles like Umbrella Corps and the Lost Planet series, which failed to resonate. Capcom realized the need to create games appealing to everyone.
"We focused on making good games that would reach people worldwide," Itsuno emphasizes.
The period leading up to 2017 was pivotal. Resident Evil 7's launch marked the beginning of Capcom's renaissance.
No series better exemplifies this global approach than Monster Hunter. While it had a dedicated Western fanbase, it was significantly larger in Japan. This wasn't intentional; several factors contributed.
Monster Hunter's success on the PSP in Japan was due in part to the popularity of handheld consoles and the ease of local multiplayer. This led to a cycle where Japanese success resulted in Japan-focused content, reinforcing its image as a Japan-only brand.
However, the West's improved internet infrastructure presented an opportunity. Monster Hunter: World (2018), released simultaneously worldwide on PS4, Xbox One, and PC, was a significant departure. It offered AAA console quality, larger areas, and bigger monsters.
"Calling it Monster Hunter: World was a nod to our desire to appeal to a worldwide audience," Tsujimoto reveals. The simultaneous global release avoided regional exclusivity, aligning with global standards.
Monster Hunter: World also incorporated changes based on global playtests, such as displaying damage numbers. These subtle tweaks propelled the series to unprecedented heights. Monster Hunter: World and Monster Hunter Rise (2022) both sold over 20 million copies.
"Monster Hunter is at its heart an action game," Tsujimoto explains. "The sense of accomplishment is key, but we analyzed where players got stuck and used that feedback to improve the experience in Wilds."
Resident Evil 7 Began Turning Things Around
Monster Hunter had a winning formula; the challenge was global outreach. For Resident Evil, the decision was to prioritize survival horror. Resident Evil executive producer Jun Takeuchi made the call.
"Around the time of Resident Evil Revelations 1 and 2, I was experimenting with different approaches," Ampo recalls. "Takeuchi set the direction to return to the series' roots."
Takeuchi mandated a focus on survival horror. Resident Evil 7's announcement at E3 2016, with its first-person perspective and moody trailer, generated immense excitement.
"We cannot underestimate how critical it is for the series to be scary and about survival," Ampo explains.
The game was a success, marking a return to survival horror. Its unsettling atmosphere made it one of the scariest entries in the series.
Capcom didn't abandon the third-person perspective entirely. While new mainline titles remained first-person, remakes, starting with Resident Evil 2, offered a third-person experience. Fan projects demonstrated a clear demand for remakes.
"It was like, 'all right, people really want this to happen,'" Ampo reveals. The Resident Evil 2 remake became the second best-selling game in the franchise's history.
The success continued with Resident Evil 3's remake. Even Resident Evil 4, despite being considered near-perfect, received a remake. Ampo admits there was initial hesitation.
"Resident Evil 4 is so beloved," Ampo says. "If we got anything wrong, people would be vocal."
The Resident Evil 4 remake was another hit, refining the action-horror balance to emphasize survival horror. Campier elements were replaced with a darker tone, retaining the action sequences.
Simultaneously, Hideaki Itsuno had a similar epiphany with Devil May Cry. Observing a trend towards softer action games, he aimed to create a challenging, stylish action game, leveraging the RE Engine's capabilities.
The Reason Behind The Change
"I felt the trend in action games was to be too kind to players," Itsuno admits. His return to Devil May Cry after a decade, utilizing the RE Engine, resulted in one of the franchise's most successful entries.
The RE Engine, replacing the MT Framework, offered significantly improved visual fidelity and faster development. Itsuno aimed to make the "coolest" action game, using the engine's capabilities to enhance style and polish.
"Devil May Cry is about being cool," Itsuno says. "I've distilled everything I consider cool into the game."
A New Capcom Golden Age
Since 2017, Capcom has consistently delivered critically acclaimed games. This success stems from a focus on globally appealing games, built with a technologically advanced engine. Capcom seamlessly transitions between genres without losing its identity.
This global approach hasn't diluted the games; instead, it's expanded their audience while remaining true to their core identities. Capcom's contemporaries are facing similar challenges to those Capcom overcame a decade ago.
When asked about a "golden age," the directors largely agreed. Nakayama stated, "It's an exciting time to be at Capcom. We can focus on things we find fun." Tsujimoto added, "Capcom is in a golden era, and we have to make it last."
