With Monster Hunter: Worlds shattering Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and several stellar remakes, Capcom appears almost invincible. 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 profound identity crisis. Resident Evil, the pioneer of survival horror, lost its edge after Resident Evil 4. Another flagship franchise, Street Fighter, faltered after the poorly-received Street Fighter 5. The end seemed near for Capcom and its beloved games.
However, a glimmer of hope emerged. A shift in development philosophy, coupled with a powerful new game engine, revitalized these iconic series, igniting years of critical and commercial success that propelled Capcom back to the top.
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 the brilliance of Street Fighter 4. 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 forgettable years since 2010. Mainline Resident Evil games, while selling well, received increasingly negative reviews. Street Fighter struggled after a poorly-received installment, and Capcom stalwarts like Devil May Cry were largely absent. Meanwhile, Monster Hunter, while hugely popular in Japan, struggled to gain significant traction internationally.
This is a stark contrast to the Capcom we know today. Since 2017, Capcom has consistently delivered hit after hit, amassing both sales and critical acclaim. This winning streak includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, several industry-leading remakes, and an acclaimed Resident Evil soft reboot. Capcom’s recent success seems almost effortless.
This resurgence required more than just learning from past mistakes. Capcom had to completely overhaul its strategy, from target audience to technology, to achieve such a dramatic turnaround. To understand this transformation, IGN spoke with four of Capcom's leading creatives.
Capcom, founded in 1979 as an arcade machine manufacturer, rose to prominence in the 80s and 90s with 2D titles like Street Fighter and Mega Man, successfully transitioning to 3D with franchises like Resident Evil. Between 2000 and 2010, Capcom successfully modernized many of its classic franchises, culminating in the creation of one of the greatest games of all time: Resident Evil 4.
2005's Resident Evil 4, lauded for its ingenious blend of horror and action, dramatically altered the franchise's trajectory. While fundamentally a horror game, inspired by works like Friday the 13th and H.P. Lovecraft, it incorporated effective action sequences. Unfortunately, this balance was lost in subsequent installments.
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 clear to both players and developers like Resident Evil 4 Remake director Yasuhiro Ampo, a Capcom veteran since 1996.
"Throughout the Resident Evil series, we've set different goals for each game," Ampo explains. "But this time, many of us felt a disconnect between what fans wanted and what we were creating."
This confusion led to games like 2012's Resident Evil 6, which attempted to please both action and horror fans by splitting the game into three storylines with six playable characters. This approach failed to achieve the crucial balance, leaving neither audience fully 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, Capcom failed to replicate that success with its sequel. Street Fighter 5 (2016) was criticized for its lack of single-player content and poor online functionality. Fans cited a lack of polish and frustrating game balance.
Beyond Street Fighter and Resident Evil, almost every major franchise 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 the mythology, redesigned protagonist, and sluggish frame rate angered fans, leading to the series being shelved.
The early-to-mid 2010s were a period of misfortune for Capcom. Key franchises struggled to repeat past successes, new titles targeting the Western market (like Lost Planet and Asura's Wrath) failed to connect, and only occasional bright spots, such as Dragon's Dogma, emerged. Change was clearly needed.
Street Fighter 5, The Lost Cause
By the mid-2010s, Capcom implemented strategic changes that would transform its fortunes. The first step was addressing the immediate problems, starting with Street Fighter 5. Director Takayuki Nakayama and producer Shuhei Matsumoto were brought in to stabilize the troubled game.
While not involved from the beginning, they inherited a game needing significant fixes to regain fan trust. "There were production challenges," Nakayama admits, "and we couldn't make major changes, so we had to move forward with existing constraints."
These constraints limited their scope. Instead of a complete overhaul, they focused on fixing pressing issues, biding their time until Street Fighter 6. "We lacked the time to address problems in Street Fighter 5," Nakayama explains. "We had to wait for Street Fighter 6 to properly address these issues."
Why not cancel Street Fighter 5 and start over? According to Matsumoto, abandoning the game 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 to learn what we wanted to do in Street Fighter 6."
Street Fighter 5 became a testing ground for new ideas. Numerous updates improved netcode, rebalanced characters, added new mechanics like V-Shift (a defensive move later considered for Street Fighter 6), and introduced new characters and V-Triggers. The goal was to rediscover the fun, addressing the frustration that had plagued the game.
"Fighting games should be fun," Matsumoto notes. "Street Fighter 5 lacked a clear path to that enjoyment. We aimed to provide more tools for new players while retaining the depth for experienced players."
Rather than a quick fix, Nakayama and Matsumoto used Street Fighter 5 as a learning experience, leading to the critically acclaimed Street Fighter 6 (2023).
Monster Hunter Took Over The World
Around 2016, Capcom underwent an internal reorganization to prepare for a new generation of games powered by the RE Engine, replacing the aging MT Framework. This wasn't just a technological shift; it also involved a mandate to create games for a global audience.
"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 approach, particularly during the PS3/Xbox 360 era, focused heavily on the perceived Western market, resulting in titles like Umbrella Corps and Lost Planet that failed to gain traction. Capcom realized it needed to create universally appealing games.
"We focused on making good games for a worldwide audience," Itsuno states.
Itsuno highlights the period leading up to 2017 as pivotal. The organizational and engine changes, combined with the release of Resident Evil 7, marked the beginning of Capcom's renaissance.
No series better embodies this global focus than Monster Hunter. While it had Western fans, it was significantly larger in Japan. This wasn't intentional; several factors contributed.
Monster Hunter's success on the PSP in Japan, due to the strong handheld market and ease of local multiplayer, created a cycle. Japanese success led to Japan-focused content, reinforcing its image as a Japan-only brand.
However, with improved Western internet infrastructure, Capcom saw an opportunity. Monster Hunter: World (2018), released simultaneously worldwide on PS4, Xbox One, and PC, delivered AAA console quality, larger areas, and bigger monsters.
"Calling it Monster Hunter: World was a nod to our aim to reach a global audience," Tsujimoto reveals. The simultaneous worldwide release and the absence of Japan-exclusive content aimed to establish global standards.
Tsujimoto and his team also made adjustments to broaden appeal. Playtests revealed the need for damage numbers, a small change that significantly improved accessibility.
Monster Hunter: World and its sequel, Monster Hunter Rise, both sold over 20 million copies, a massive increase from previous installments (1.3 to 5 million). This success wasn't accidental; it involved making the game more accessible without sacrificing its core elements.
"Monster Hunter is an action game, and mastering that action is key," Tsujimoto explains. "But we analyzed where players struggled, gathered feedback, and incorporated that knowledge into Wilds."
Resident Evil 7 Began Turning Things Around
Monster Hunter had a winning formula; the challenge was global appeal. For Resident Evil, the decision was to prioritize either gory action or survival horror. Executive producer Jun Takeuchi chose survival horror.
"Around the time of Resident Evil Revelations 1 and 2, Takeuchi set the direction to return to the series' roots," recalls Yasuhiro Ampo. Takeuchi emphasized the importance of scariness and survival in Resident Evil 7.
"Takeuchi made it clear that scariness and survival were critical," Ampo says. "Resident Evil 7 would return to its origins and prioritize survival."
The first-person perspective, while a departure, brought back the series' lost sense of fear. Resident Evil 7's unsettling setting made it one of the scariest games in the series.
Capcom didn't abandon the third-person perspective entirely. While new mainline entries remained first-person, remakes of Resident Evil 2 and 3, and later Resident Evil 4, brought back the classic view, responding to fan demand and proving extremely successful.
"People really wanted remakes," Ampo reveals. "So Hirabayashi said, 'We'll do it.'"
The Resident Evil 2 Remake perfectly blended horror, action, and puzzles, introducing a menacing Tyrant system. It became the second best-selling Resident Evil game.
The Resident Evil 4 Remake, despite initial hesitation, proved another massive success. It refined the action-horror balance, returning to the survival horror roots while retaining heart-pounding action moments.
Simultaneously, Hideaki Itsuno, director of Devil May Cry, observed a trend towards overly-casual action games. For Devil May Cry 5, he aimed to create a challenging, stylish action game, leveraging the RE Engine's capabilities.
The Reason Behind The Change
"I felt action games were too kind to players," Itsuno admits. His 10-year absence from the franchise allowed him to reassess the series and utilize the advancements of the RE Engine.
"Technology changed significantly," Itsuno says. The RE Engine's photorealistic capabilities and rapid development tools allowed for increased style and polish in Devil May Cry 5.
"Devil May Cry is about being cool," Itsuno explains. "I've always tried to incorporate cool things from my life into the games."
A New Capcom Golden Age
Since 2017, Capcom has consistently delivered critically acclaimed games. Its focus on globally appealing games, powered by the advanced RE Engine, has resulted in unprecedented success. Capcom seamlessly transitions between genres without losing its identity.
This global focus hasn't diluted the games; instead, it's broadened their appeal while maintaining their core elements. Capcom's current success contrasts sharply with its competitors who are struggling to find consistency.
When asked about this "golden age," the directors largely agreed. Nakayama states, "It's an exciting time. We're excited about our work and can focus on what's fun." Tsujimoto adds, "We're in a golden era, and we need to make it last."
