With Monster Hunter Rise shattering Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and several stellar remakes, Capcom's current success seems almost inevitable. 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 its identity and its audience.
Capcom was grappling with a severe identity crisis. Resident Evil, the pioneer of survival horror, had lost its edge after Resident Evil 4. Another flagship franchise, Street Fighter, stumbled after the poorly-received Street Fighter 5. The situation looked dire; the end could easily have been the beginning of the end for Capcom and its beloved games.
But amidst the gloom, a glimmer of hope emerged. A strategic shift in game development, bolstered by a powerful new game engine, revitalized these cherished franchises, igniting years of critical acclaim and financial success that propelled Capcom back into the gaming stratosphere.
Resident Evil Lost Its Way
2016 was a particularly rough year. Umbrella Corps, the year's major Resident Evil release, a co-op online shooter, was met with harsh criticism from both reviewers and fans. Street Fighter 5 similarly disappointed longtime fans, its shortcomings a stark contrast to the brilliance of Street Fighter 4. Even the long-awaited return of Frank West in Dead Rising 4 couldn't salvage the situation, ultimately marking the end of the series' new entries.
This marked the nadir of a string of forgettable years for Capcom, stretching back to 2010. Mainline Resident Evil games, despite strong sales, received increasingly negative reviews. Street Fighter faltered with a poorly-received new installment, while other Capcom mainstays like Devil May Cry seemed to vanish. Meanwhile, Monster Hunter, the company's most successful franchise at the time, dominated Japan but struggled to gain significant traction internationally.
This is a far cry from the Capcom we know today. Since 2017, Capcom has maintained an almost unbroken string of successes, releasing hit after hit from its most famous franchises, accumulating both sales and accolades. This remarkable run includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, and a trio of critically acclaimed remakes, along with a successful Resident Evil soft reboot. In short: Capcom's recent track record is practically flawless.
This resurgence wasn't merely a matter of learning from past mistakes; it required a complete overhaul of Capcom's strategy, from target audiences to the technology employed.
Capcom, founded 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 adeptly modernized many of its classic franchises, culminating in one of the greatest games of all time: Resident Evil 4.
2005's Resident Evil 4, lauded for its innovative blend of horror and action, significantly altered the course of the franchise. While fundamentally a horror game, inspired by works like Friday the 13th and H.P. Lovecraft, it also incorporated impactful action sequences reminiscent of Hollywood cinema. This balance, however, was lost in subsequent installments.
In 2009's Resident Evil 5, Chris Redfield's superhuman feats (like punching a boulder the size of a car) and the car chase sequence leaned heavily into action, overshadowing the horror elements. The series' identity was blurring, a fact apparent to 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 for each game," Ampo explains. "But this time, many of us felt a disconnect between what the fans wanted and what we were creating."
This lack of direction manifested in games like 2012's Resident Evil 6, which attempted to please both action and horror fans by splitting the narrative across six characters and three storylines. This approach diluted the experience, failing to satisfy either group.
This decline wasn't limited to Resident Evil. Following the success of Street Fighter 4, Capcom's subsequent attempt, Street Fighter 5 (2016), was criticized for its barebones single-player content and poor online functionality. Fans perceived a lack of polish and a confusing design philosophy.
The struggles extended beyond Street Fighter and Resident Evil. Devil May Cry, another key franchise, saw diminishing returns, leading Capcom to outsource DmC: Devil May Cry (2013) to Ninja Theory. While gaining cult status, the game's changes were met with negative reactions, putting the series on hold.
This period defined Capcom's early-to-mid 2010s: key franchises struggled to replicate past successes, new titles failed to connect with audiences, and promising projects like Lost Planet and Asura's Wrath underperformed. While there were bright spots, like Dragon's Dogma, Capcom's overall focus lacked direction.
Street Fighter 5, The Lost Cause
By the mid-2010s, Capcom initiated significant strategic changes. Addressing the immediate issues, the company tasked director Takayuki Nakayama and producer Shuhei Matsumoto with reviving Street Fighter 5.
While unable to drastically alter Street Fighter 5's course, Nakayama focused on fixing critical problems, laying the groundwork for Street Fighter 6. The decision to continue supporting Street Fighter 5, rather than abandoning it, was strategic. Matsumoto explains, "It wasn't about ending Street Fighter 5; it was about using its development to inform Street Fighter 6."
Street Fighter 5 became a testing ground for new ideas, ultimately contributing to the success of Street Fighter 6 (2023).
Monster Hunter Took Over The World
Around 2016, Capcom underwent a significant internal reorganization, introducing the RE Engine to replace the aging MT Framework. This wasn't just a technological upgrade; it signaled a commitment to creating games for a global audience.
Hideaki Itsuno, known for his work on Devil May Cry, notes, "The engine change and the clear goal of creating globally appealing games came together around that time."
Capcom's previous attempts to capture the Western market, often by mimicking Western gaming trends, proved unsuccessful. The company realized the need to create games appealing to a global audience, not just specific regions.
Monster Hunter exemplifies this new global strategy. While possessing a dedicated Western fanbase, it had always been significantly larger in Japan. This was partly due to the popularity of handheld consoles in Japan, which facilitated local multiplayer gameplay, a key element of Monster Hunter.
Monster Hunter: World (2018), released simultaneously worldwide on PlayStation 4, Xbox One, and PC, marked a turning point. Its AAA quality, large-scale environments, and global release strategy contributed to its immense success, selling over 20 million copies.
Tsujimoto emphasizes the importance of global accessibility and avoiding region-specific content, stating, "Realigning ourselves to meet global standards was crucial."
The success of Monster Hunter: World wasn't accidental. The developers carefully analyzed player feedback and made subtle adjustments to enhance the experience for a wider audience without compromising the core gameplay.
Resident Evil 7 Began Turning Things Around
For Resident Evil, Capcom needed to redefine its core identity. Executive producer Jun Takeuchi decided to prioritize survival horror. Resident Evil 7, announced at E3 2016, marked a return to the series' roots with its first-person perspective and unsettling atmosphere.
"Takeuchi made it clear that the series needed to be scary again, emphasizing survival," Ampo recalls.
Resident Evil 7's success paved the way for a series of remakes, starting with Resident Evil 2, which successfully blended horror, action, and puzzles. The Resident Evil 4 remake, despite initial hesitation, also proved highly successful, refining the action-horror balance and enhancing the overall atmosphere.
Simultaneously, Devil May Cry 5, under the direction of Hideaki Itsuno, embraced a more challenging, stylish action experience, leveraging the capabilities of the RE Engine.
The Reason Behind The Change
Itsuno aimed to create a "cool" action game, using the RE Engine's flexibility to refine gameplay and visuals. The engine's rapid development capabilities allowed for extensive experimentation, resulting in a stylish and impactful game.
Ampo highlights the RE Engine's role in streamlining development, enabling quicker iteration and internal tool creation.
A New Capcom Golden Age
Since 2017, Capcom has consistently delivered high-quality games. Its success stems from a focused strategy: creating globally appealing games using advanced technology. This approach has allowed Capcom to seamlessly transition between various genres without compromising the unique identity of its franchises.
The company's directors express optimism about this "golden age," emphasizing the importance of maintaining this momentum.
