With Monster Hunter Wilds breaking Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and a series of stellar remakes, it's easy to believe that Capcom is currently incapable of failure. However, this wasn't always the case. Just a few years ago, following a string of critical and commercial flops, Capcom was struggling to maintain its relevance and connect with its audience.

Capcom was facing an identity crisis. The survival horror genre-defining Resident Evil had lost its edge after Resident Evil 4, and another flagship series, Street Fighter, was struggling after the underwhelming reception of Street Fighter 5. This period could have marked the end of Capcom and its beloved franchises.

Yet, amidst the challenges, a glimmer of hope emerged. A significant shift in Capcom's game development approach, bolstered by the introduction of a powerful new game engine, revitalized their iconic series. This transformation not only brought back their much-loved games but also set the stage for a decade of critical and financial success, propelling Capcom back into the gaming industry's elite.

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, a new Resident Evil online co-op shooter, was met with harsh criticism from both reviewers and fans. Meanwhile, Street Fighter 5 disappointed longtime fans, and Dead Rising 4 marked the last new entry in its series. This period represented the nadir of a series of underwhelming years for Capcom, which had been struggling since 2010.

The mainline Resident Evil games saw declining critical reception despite robust sales, while Street Fighter continued to falter. Other key franchises like Devil May Cry were absent, and even Capcom's most successful series at the time, Monster Hunter, faced challenges in expanding its international appeal.

"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 underscores the disconnect Capcom experienced with its audience during these difficult years.

Fast forward to today, and Capcom has become a beacon of consistency in the gaming industry. Since 2017, the Osaka-based company has released a series of hit games from its most renowned franchises, including Monster Hunter World, Devil May Cry 5, Street Fighter 6, and a trio of acclaimed remakes along with a successful soft reboot of the Resident Evil series. These releases have garnered both commercial success and critical acclaim, positioning Capcom as a studio that rarely misses a beat.

Achieving this turnaround required more than just learning from past mistakes. Capcom had to fundamentally rethink its strategy, from targeting new types of players to leveraging advanced technology. IGN sat down with four of Capcom’s leading creatives to understand how the company managed to recover and thrive.

Founded in 1979 as a maker of electronic game machines, Capcom rose to prominence in the 80s and 90s with iconic 2D games like Street Fighter and Mega Man. The company successfully transitioned to 3D with titles like Resident Evil, culminating in the creation of one of the greatest games of all time: Resident Evil 4.

Resident Evil 4, considered by many to be a generational high point. Credit: Capcom

However, the balance between horror and action that made Resident Evil 4 so successful was lost in subsequent games. Resident Evil 5 veered more into action territory, with scenes more reminiscent of Hollywood blockbusters than survival horror. This shift was evident to both players and developers, such as Resident Evil 4 remake director Yasuhiro Ampo, who has been involved 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 explains.

This confusion in direction led to games like Resident Evil 6, which tried to cater to both action and horror fans but ultimately left both groups unsatisfied. The series' identity was further diluted with experimental spinoffs like online co-op games.

The struggles were not confined to Resident Evil. After the success of Street Fighter 4, Capcom failed to replicate that success with Street Fighter 5, which was criticized for its lack of content and poor online functionality. Similarly, Devil May Cry saw diminishing returns, leading to the outsourcing of DmC: Devil May Cry to Ninja Theory, a move that was met with mixed reception.

Capcom's attempts to capture the Western market with games like Lost Planet and Asura's Wrath also fell short. Amidst these challenges, Dragon's Dogma emerged as a bright spot, but overall, Capcom's focus seemed scattered.

Street Fighter 5, The Lost Cause

Street Fighter 5 was a letdown. Credit: Capcom

By the mid-2010s, Capcom began implementing strategic changes to turn its fortunes around. 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.

"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."

Street Fighter 5 would be improved into Street Fighter 5: Arcade Edition. Credit: Capcom

These constraints limited the scope of improvements, leading to a focus on fixing the most pressing issues. Rather than overhauling Street Fighter 5 into a top-tier game, Nakayama's team worked on incremental improvements, setting the stage for the development of 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 team used Street Fighter 5 as a testing ground, experimenting with new mechanics and features that would later be refined in Street Fighter 6. This approach allowed Capcom to learn from their mistakes and develop a sequel that was critically acclaimed upon its release in 2023.

To prevent similar situations in the future, Capcom made significant behind-the-scenes changes. These included internal reorganization and the adoption of the new RE Engine, which replaced the aging MT Framework. This shift was not just about technology but also about a new mandate to create games for a global audience.

Monster Hunter Took Over The World

Monster Hunter: World marked the start of the series' global success. Credit: Capcom

Around the launch of Street Fighter 5 in 2016, Capcom underwent internal restructuring to prepare for a new generation of games powered by the RE Engine. This change was driven by a clear goal to make games that appealed to a global market, as articulated by former game director Hideaki Itsuno.

"It was a few factors that came together,” says Itsuno. "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 previous focus on capturing the Western market had led to action-heavy titles like Resident Evil 4, but subsequent games like Umbrella Corps and Lost Planet failed to resonate. Recognizing the need to appeal to a broader audience, 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 towards making good games that would reach people from all over the world,” Itsuno adds.

The pivotal moment came with the release of Resident Evil 7 in 2017, which marked the beginning of Capcom's renaissance. No other series better embodies Capcom's new global strategy than Monster Hunter. While the series had a dedicated fanbase in the West, it was primarily a Japanese phenomenon until Monster Hunter: World.

The success of Monster Hunter on the PSP in Japan was due to the strong handheld gaming market there, which allowed for easy multiplayer gameplay without internet access. However, this focus on Japan inadvertently reinforced the series as a "Japan-only" brand.

"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,” explains executive producer Ryozo Tsujimoto.

With improved internet infrastructure in the West and a desire to expand globally, Capcom released Monster Hunter: World in 2018 on PlayStation 4, Xbox One, and PC. This game was designed to appeal to a worldwide audience, with simultaneous global releases and no region-locked content.

"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."

To broaden its appeal, Monster Hunter: World incorporated feedback from global focus tests, including the addition of damage numbers to enhance player engagement. This approach led to unprecedented success, with both Monster Hunter: World and its follow-up, Monster Hunter Rise, selling over 20 million copies each.

"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 explains. "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."

Resident Evil 7 Began Turning Things Around

Resident Evil 7 marked a return to the series' survival horror roots. Credit: Capcom

While Monster Hunter found its global formula, Resident Evil faced the challenge of returning to its survival horror roots. Executive producer Jun Takeuchi made the pivotal decision to refocus the series on horror.

"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 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."

This decision was validated with the release of Resident Evil 7, announced at PlayStation’s E3 2016 conference. The game's first-person perspective and focus on survival horror were a departure from the third-person action of previous titles, but it was a successful return to the series' core.

"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 says.

The game was a hit, revitalizing the series with its return to survival horror and a southern gothic setting that added to its eerie atmosphere. While Capcom continued to explore third-person gameplay with remakes like Resident Evil 2, the shift to first-person in Resident Evil 7 and 8 was a bold move that paid off.

The success of the Resident Evil 2 remake, which introduced a menacing Tyrant system and combined horror with action, further solidified Capcom's strategy. It became the second best-selling game in the franchise's history.

"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 acknowledges. Despite initial hesitation, the Resident Evil 4 remake was a success, fine-tuning the balance between action and horror to align with Takeuchi's vision.

Resident Evil 4 Remake: Horror reborn. Credit: Capcom

The Reason Behind The Change

Capcom's goal: Make the coolest game ever. Credit: Capcom

As Capcom rediscovered its core strengths, longtime Devil May Cry director Hideaki Itsuno aimed to reinvigorate the action genre. After working on Dragon's Dogma, Itsuno returned to Devil May Cry with a vision to create the coolest action game possible, leveraging the new RE Engine.

"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's capabilities allowed Itsuno to achieve his vision, offering photorealistic visuals and nimble development tools that enabled rapid iteration and refinement. This resulted in Devil May Cry 5, one of the most critically and financially successful games in the franchise.

"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 consistently released game of the year contenders, a feat that sets it apart in an industry where consistency is rare. This success is a testament to Capcom's focus on creating globally appealing games using advanced technology.

"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’s Tsujimoto, expressing a desire to extend this golden age as long as possible.

Capcom's strategy of maintaining the unique identities of its franchises while broadening their appeal has resulted in a new golden age that shows no signs of slowing down. The company's ability to seamlessly transition between different genres without compromising quality is a testament to its renewed focus and commitment to excellence.