by Noah Mar 13,2025
With Monster Hunter Rise shattering Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and several stellar remakes, Capcom appears virtually unstoppable. However, this wasn't always the case. Less than a decade ago, a string of critical and commercial failures left the company teetering on the brink, lost both in identity and audience.
Capcom suffered a profound identity crisis. Resident Evil, the pioneer of survival horror, lost its bite after Resident Evil 4. Similarly, Street Fighter, another flagship franchise, faltered after the poorly-received Street Fighter 5. The end seemed near for Capcom and its beloved games.
Yet, from the ashes, a transformation emerged. A shift in game development philosophy, coupled with a powerful new game engine, revitalized these iconic franchises, igniting years of critical acclaim and financial success, catapulting Capcom back to the top tier.
2016 was a disastrous year. Umbrella Corps, the year's major Resident Evil release, a co-op online shooter, was met with harsh criticism from both critics and fans. Street Fighter 5 similarly disappointed long-time fans, a stark contrast to the brilliance of Street Fighter 4. Even the much-anticipated return of Frank West in Dead Rising 4 proved to be the series' final new entry. This marked the nadir of a string of forgettable years stretching back to 2010. Mainline Resident Evil titles received diminishing critical praise despite strong sales. Street Fighter struggled after a poorly-received installment, and beloved franchises like Devil May Cry vanished from the scene. Meanwhile, Monster Hunter, while immensely popular in Japan, struggled to gain traction internationally.
This is a stark contrast to the Capcom we know today. Since 2017, Capcom has consistently delivered hit after hit, achieving both phenomenal sales and critical recognition. This remarkable run includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, and a trio of industry-leading remakes alongside a critically acclaimed Resident Evil soft reboot. Capcom's recent track record suggests an almost unparalleled success rate.
This success wasn't merely a matter of learning from past mistakes; it required a complete strategic overhaul, from target audience to the technology employed.
Capcom, established in 1979 as a manufacturer of electronic game machines, rose to prominence in the 80s and 90s with 2D titles like Street Fighter and Mega Man, before successfully transitioning to 3D with franchises like Resident Evil. Between 2000 and 2010, Capcom successfully modernized many of its iconic 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, masterfully blending horror and action. However, this very blend significantly 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 also incorporated effective Hollywood action elements. This balance, unfortunately, 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 recognized by both players and developers, including Resident Evil 4 remake director Yasuhiro Ampo, a veteran of the series since 1996.
"Throughout the Resident Evil series, we 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 culminated in games like 2012's Resident Evil 6, which attempted to please both action and horror fans. The game's split narrative, featuring six playable characters and three distinct storylines, catered to different preferences, ultimately failing to satisfy either group. Online discussions reflected fan disappointment, while developers experimented with online co-op spin-offs.
This decline wasn't limited to survival horror. Following the success of Street Fighter 4, Capcom's fighting game franchise also experienced a setback. Street Fighter 4's unique art style and character roster made it an instant hit, but 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 balance philosophy that created a frustrating experience.
The struggles extended beyond Street Fighter and Resident Evil. Devil May Cry, a popular action game, saw diminishing returns, leading Capcom to outsource DmC: Devil May Cry (2013) to Ninja Theory. While achieving cult status, DmC's fresh take on the mythology, redesigned protagonist, and sluggish frame rate were met with negative reactions, shelving the series until further notice.
This period defines early-to-mid 2010s Capcom: key franchises struggled to replicate past successes, while others were sidelined. New titles aiming for the Western market, like Lost Planet and Asura's Wrath, also failed to resonate. While there were exceptions, like Dragon's Dogma, Capcom's overall focus appeared scattered. Change was clearly needed.
By the mid-2010s, Capcom initiated strategic changes that would transform its fortunes. The first step involved addressing existing issues, beginning with Street Fighter 5. Director Takayuki Nakayama and producer Shuhei Matsumoto were brought in to restore the game's stability.
"There were challenges in the game's production," Nakayama admits. "We couldn't make major pivots, so we had to proceed in the existing direction, which limited our options."
These constraints severely limited their scope. Instead of a complete overhaul, Nakayama focused on fixing critical issues, biding time until work on Street Fighter 6 could begin.
"We didn't have enough 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, abandoning the game wasn't an option. "It wasn't about ending Street Fighter 5 and focusing on Street Fighter 6," he says. "While working on Street Fighter 5, we were figuring out what we wanted to do with Street Fighter 6. Street Fighter 5's development helped us determine the direction for the sequel."
The team treated Street Fighter 5 as a learning experience, using it to identify and correct design flaws. Numerous updates followed, including netcode improvements, character rebalances, new characters, and mechanics like V-Shift, later incorporated into Street Fighter 6.
Beyond fixing the game, Capcom aimed to rediscover the fun. Street Fighter 5 had become frustrating; the goal was to make it enjoyable. Matsumoto emphasizes the importance of a clear pathway to enjoyment for players.
While they could have abandoned Street Fighter 5, Nakayama and Matsumoto understood that would be a shortcut. By using Street Fighter 5 as a testing ground, Street Fighter 6 (2023) launched as one of the franchise's most acclaimed entries.
To prevent repeating past mistakes, Capcom implemented significant behind-the-scenes changes.
Around 2016, Capcom underwent an internal restructuring to prepare for a new generation of games powered by the RE Engine, replacing the aging MT Framework. This wasn't just a technological upgrade; it included a mandate to create games for a global audience, not just existing regional fans.
"It was a combination of factors," 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 Western gaming trends, with mixed results. After several years, they realized the need to create universally appealing games.
"We focused on making good games that would reach people worldwide," Itsuno states.
Itsuno notes that the period leading up to 2017 was pivotal. The organizational and engine changes converged, culminating in the release of Resident Evil 7, which marked the beginning of Capcom's resurgence.
No series better exemplifies this global ambition than Monster Hunter. While possessing a dedicated Western fanbase, it was significantly larger in Japan. This wasn't intentional; factors like the popularity of handheld consoles in Japan contributed significantly. The success of Monster Hunter Freedom Unite on the PSP reinforced this regional dominance.
Ryozo Tsujimoto, executive producer of the series, highlights the role of handheld consoles in facilitating multiplayer gameplay among Japanese players, even without internet access.
This created a cycle: Monster Hunter's success in Japan led to region-specific content, reinforcing its image as a primarily Japanese franchise.
However, the Western fanbase existed, and they observed the exclusive content released in Japan. As Western internet infrastructure improved, Tsujimoto saw an opportunity to launch a globally accessible Monster Hunter title.
Monster Hunter: World (2018), released simultaneously worldwide on PS4, Xbox One, and PC, was a significant departure. Developed for high-powered consoles, it featured enhanced graphics, larger areas, and bigger monsters.
"Calling it Monster Hunter: World was a nod to our intention to appeal to a global audience," Tsujimoto explains.
The simultaneous worldwide release and the absence of region-locked content were crucial. Tsujimoto and his team also refined the formula to broaden its appeal. Focus tests worldwide shaped game systems, contributing to the game's global success.
One key change was displaying damage numbers, a small adjustment that significantly enhanced the experience. Monster Hunter: World and its sequel, Monster Hunter Rise, both sold over 20 million copies, far exceeding previous sales figures.
"Monster Hunter is at its core an action game," Tsujimoto explains. "The sense of accomplishment from mastering the action is important, but for new players, it's about getting to that point. We analyze where players get stuck, gather feedback, and use that knowledge to improve the experience."
Monster Hunter had a winning formula; the challenge was global outreach. For Resident Evil, the team had to choose between action and survival horror. Jun Takeuchi, executive producer, decided to prioritize survival horror.
"Around the time I worked on Resident Evil Revelations 1 and 2, I was experimenting with different approaches," Ampo recalls. "Jun Takeuchi set the direction for Resident Evil to return to its roots."
Takeuchi's decision to emphasize survival horror proved correct. Resident Evil 7, announced at E3 2016, marked a return to first-person perspective and a focus on terrifying atmosphere.
"We cannot underestimate how critical it is for the series to be scary and about survival," Ampo says.
The game was a success, though not on the level of Resident Evil 4. Its unsettling atmosphere made it one of the scariest entries in the series.
Capcom didn't abandon the third-person perspective entirely. While mainline titles remained first-person, third-person entries were planned through remakes, starting with Resident Evil 2.
"People really wanted this to happen," Ampo reveals. "Producer Yoshiaki Hirabayashi came up with the slogan: 'Well, we'll do it.'"
The Resident Evil 2 remake was a massive success, blending horror, action, and puzzles. It became the second best-selling Resident Evil game.
A Resident Evil 3 remake followed, but the decision to remake Resident Evil 4, a game still considered modern, was met with internal hesitation.
"Resident Evil 4 is so beloved," Ampo admits. "If we got anything wrong with the remake, people would be vocal."
Despite the hesitation, the Resident Evil 4 remake was also a success, refining the action-horror balance and enhancing the darker tone.
Simultaneously, Hideaki Itsuno, director of Devil May Cry, had a similar realization. After Dragon's Dogma, he observed a trend towards more casual action games. With Devil May Cry 5, he aimed to create a challenging, stylish action game, leveraging the RE Engine.
"I felt the trend in action games was to be too kind to players," Itsuno admits. "Lending a hand too much."
Itsuno, having directed most Devil May Cry games, returned after a long hiatus. The time away allowed him to refine his vision, and the RE Engine provided the technological tools to achieve it.
"Technology changes significantly over time," Itsuno says.
Ampo describes the RE Engine's development: "The original concept was to create a less stressful development environment. Being an internal engine, we could quickly request and implement additional tools."
This allowed for rapid iteration and experimentation. Itsuno aimed to create the "coolest" action game, using the RE Engine's capabilities to enhance style and visual fidelity.
"Devil May Cry is about being cool," Itsuno states. "I try to distill everything I consider cool into the game."
Since 2017, Capcom has consistently released critically acclaimed games. Their focus on creating globally appealing games using the advanced RE Engine has proven incredibly successful. They seamlessly transition between genres without losing their distinct identities.
This global focus didn't dilute the games; instead, it broadened their appeal while maintaining their core identities.
When asked about this "golden age," the directors largely agreed. Nakayama states, "It's an exciting time at Capcom. We're excited about what we're working on and can focus on things we find fun."
Tsujimoto adds, "Capcom is in a golden era, and we have to do everything to make it last."
CD Projekt Confirms Witcher 4's Protagonist Shift
Metroid Prime Artbook Releasing as Nintendo x Piggyback Collab
Squid Game: Season 2 Release Date Revealed
Introducing LOK Digital on iOS & Android: Standalone Puzzle Innovation
Exclusive: Beloved CN Games Removed from Online Stores
Retro Arcade Racer Roars onto Mobile with Victory Heat Rally
Diablo 4: Roguelite Origins Revealed
Marvel Rivals Player Turns The Table On Jeff The Land Shark\'s Ultimate