With *Monster Hunter Wilds* breaking Steam records and *Resident Evil* more popular than ever thanks to *Village* and a series of stellar remakes, it's clear that Capcom has reached a new pinnacle of success. Yet, it wasn't always smooth sailing for the gaming giant. Less than a decade ago, following a series of critical and commercial disappointments, Capcom found itself struggling to maintain its footing and reconnect with its audience.
Capcom was grappling with an identity crisis. The survival horror genre, which *Resident Evil* pioneered, seemed to have lost its edge after *Resident Evil 4*. Meanwhile, *Street Fighter*, another cornerstone franchise, was faltering with the underwhelming reception of *Street Fighter 5*. These setbacks could have spelled the end for Capcom, but the company found a way to turn things around.
Amidst these challenges, Capcom embarked on a transformative journey. By adopting a new game engine and rethinking its development approach, Capcom revitalized its beloved series. This shift not only breathed new life into these franchises but also set the stage for a series of critically acclaimed and financially successful releases that have firmly reestablished Capcom as a leading force in the gaming industry.
Resident Evil Lost Its Way
Resident Evil 6 marked a low point for the mainline series. Credit: Capcom
2016 was a 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* similarly disappointed longtime fans, who were shocked by its lackluster quality compared to its predecessor, *Street Fighter 4*. Additionally, *Dead Rising 4*, featuring the return of Frank West, marked the last new entry in the series.
This period represented a low point in a series of underwhelming years for Capcom since 2010. The mainline *Resident Evil* games saw declining critical acclaim despite strong sales, *Street Fighter* struggled with its latest release, and other key franchises like *Devil May Cry* were absent from the scene. *Monster Hunter*, while hugely successful in Japan, faced challenges in breaking into 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," reflects a Capcom developer. This sentiment starkly contrasts with Capcom's current standing, which, since 2017, has seen the company consistently release hits from its iconic franchises, including *Monster Hunter World*, *Devil May Cry 5*, *Street Fighter 6*, and a series of top-tier remakes alongside an acclaimed soft reboot of the *Resident Evil* series. Capcom's recent track record suggests they've found a formula for success.
Achieving this turnaround required more than just learning from past mistakes. Capcom had to overhaul its strategy, from the type of players it targeted to the technology it employed. IGN spoke with four of Capcom's leading creatives to understand 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 2D classics like *Street Fighter* and *Mega Man*. The transition to 3D gaming was marked by successes such as *Resident Evil*. Between 2000 and 2010, Capcom adeptly modernized its classic franchises, culminating in the release of the critically acclaimed *Resident Evil 4* in 2005.
Resident Evil 4 is considered by many to be a generational high point. Credit: Capcom
*Resident Evil 4* blended horror with action in a way that resonated deeply with players, but subsequent entries struggled to maintain this balance. *Resident Evil 5* introduced elements more reminiscent of action films than horror, and *Resident Evil 6* attempted to cater to both action and horror fans but ultimately satisfied neither. This identity crisis was evident to fans and developers alike, as noted by *Resident Evil 4* remake director Yasuhiro Ampo.
"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 explains.
This confusion also affected *Street Fighter*. After the success of *Street Fighter 4*, the sequel, *Street Fighter 5*, was released in a state that disappointed fans due to its lack of content and problematic online features.
Capcom's other franchises also faced challenges. *Devil May Cry* saw diminishing returns, leading Capcom to outsource *DmC: Devil May Cry* to Ninja Theory. While *DmC* gained a cult following, its reception was mixed, and the series was put on hold. Capcom's attempts to capture the Western market with games like *Lost Planet* and *Asura's Wrath* also fell short, with *Dragon's Dogma* being a notable exception.
Street Fighter 5, The Lost Cause
Street Fighter 5 was a let down. Credit: Capcom
By the mid-2010s, Capcom began implementing strategic changes to reverse its fortunes. One of the first steps was addressing the issues with *Street Fighter 5*. Directors Takayuki Nakayama and producer Shuhei Matsumoto were tasked with improving the game to regain fan trust.
Street Fighter 5 would be 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 admits. "And because we were in 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."
Despite these limitations, the team worked to fix the most pressing issues in *Street Fighter 5*, 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 says. "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."
Matsumoto explains that abandoning *Street Fighter 5* was not an option. "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," he says.
The development of *Street Fighter 5* became a laboratory for experimenting with new ideas, which were later refined and incorporated into *Street Fighter 6*. This process involved numerous updates, from improving the netcode and character balances to introducing new characters, V-Triggers, and defensive moves like V-Shift.
The overarching goal was to rediscover the fun in fighting games, which *Street Fighter 5* had struggled to maintain. "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 says. "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."
Rather than cutting their losses, Nakayama and Matsumoto used *Street Fighter 5* as a testing ground for new ideas, which ultimately led to the critically acclaimed *Street Fighter 6*. This approach helped Capcom avoid repeating past mistakes and ensured a more robust development process moving forward.
Monster Hunter Took Over The World
Monster Hunter revolution started. Credit: Capcom
Around the time of *Street Fighter 5*'s launch, Capcom underwent an internal reorganization to prepare for a new generation of games powered by its new RE Engine. This shift was not just about new tools but also about a new mandate to create games for a global audience.
"It was a few factors that came together," says Hideaki Itsuno, a former game director at Capcom 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."
Capcom's earlier attempts to capture the Western market with action-heavy games like *Resident Evil 4* and spinoffs like *Umbrella Corps* had mixed results. Recognizing the need for a broader appeal, Capcom shifted its focus to creating universally appealing games.
"I think that we had that clear goal of just focusing and not holding anything back," Itsuno says. "Towards making good games that would reach people from all over the world."
This shift in focus was pivotal, and *Resident Evil 7*'s launch in 2017 marked the beginning of Capcom's renaissance. No series better exemplifies this global ambition than *Monster Hunter*. While popular in the West, *Monster Hunter* had been primarily successful in Japan due to its focus on handheld gaming, which was more popular in Japan.
"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," explains *Monster Hunter* executive producer Ryozo Tsujimoto.
The handheld market's strength in Japan inadvertently positioned *Monster Hunter* as a Japan-centric franchise. However, with improved internet infrastructure globally, Tsujimoto and his team saw an opportunity to expand the series' reach with *Monster Hunter: World*.
Released in 2018 on PlayStation 4, Xbox One, and PC, *Monster Hunter: World* was designed to appeal to a worldwide audience. "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 reveals. "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, without Japan-exclusive content, aligning with global standards. Tsujimoto and his team conducted global focus tests, leading to changes like displaying damage numbers when players hit monsters. These tweaks helped *Monster Hunter: World* and its follow-up, *Monster Hunter Rise*, achieve unprecedented sales, exceeding 20 million copies each.
"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 emphasizes. This approach continues with *Monster Hunter Wilds*, focusing on making the series accessible to new players while maintaining its core action elements.
Resident Evil 7 Began Turning Things Around
Welcome to the family. Credit: Capcom
While *Monster Hunter* found a winning formula, *Resident Evil* faced its own challenges. The development team had to decide whether to focus on gory action or survival horror. Ultimately, executive producer Jun Takeuchi decided the series should return to its 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," recalls *Resident Evil 2* and 4 remake director Yasuhiro Ampo. "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."
*Resident Evil 7* was announced at PlayStation’s E3 2016 conference, with a first-person perspective that returned the series to its horror roots. "We cannot underestimate how critical it is for the series for it to be scary," Ampo says. This shift paid off, with *Resident Evil 7* becoming one of the scariest games in the series and marking a significant turning point.
While *Resident Evil 7* and 8 adopted a first-person perspective, Capcom also recognized the demand for third-person experiences through remakes, starting with *Resident Evil 2*. The remake was a critical and commercial success, blending horror with action and puzzles, and introducing the menacing Tyrant system.
"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 admits. Despite initial hesitations, the *Resident Evil 4* remake was another hit, fine-tuning the balance between action and horror to align with Takeuchi's vision of returning to survival horror roots.
Horror reborn. Credit: Capcom
As *Resident Evil* rediscovered its horror core, *Devil May Cry* director Hideaki Itsuno also sought to reinvigorate his series. After working on *Dragon's Dogma*, Itsuno felt action games had become too lenient. With *Devil May Cry 5*, he aimed to challenge players using the powerful RE Engine.
The Reason Behind The Change
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 admits. "Maybe, for me, a little bit too kind to the players, lending a hand to the player too much to my liking."
The RE Engine, which replaced the older MT Framework, offered significant improvements in visual fidelity and development speed. "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," Ampo explains. "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."
This flexibility allowed Itsuno to experiment and refine *Devil May Cry 5*, aiming to create the "coolest" action game possible. "Devil May Cry is a franchise that stands on being cool," Itsuno says. "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 released a game of the year contender almost annually, a feat that sets it apart from many major studios. This success is attributed to its focus on creating globally appealing games using the 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," says *Monster Hunter* executive producer Ryozo Tsujimoto. This golden age has seen Capcom maintain the essence of its games while expanding their global reach, a balance that many other studios struggle to achieve.
As Capcom continues to thrive, its competitors find themselves in the position Capcom was once in—chasing trends and losing their identities. However, Capcom's strategic overhaul over the past decade has solidified its position at the forefront of the gaming industry, showing no signs of slowing down.
