Capcom: From Struggle to Renaissance

With Monster Hunter Wilds breaking Steam records and Resident Evil more popular than ever thanks to Village and a series of stellar remakes, it seems Capcom is now almost incapable of failure. However, this wasn’t always the case. Less than a decade ago, after a string of critical and commercial flops, Capcom was on the verge of collapse, having lost both its direction and its audience.

Capcom was in the throes of an identity crisis. Its flagship franchises, such as Resident Evil and Street Fighter, had lost their luster. Meanwhile, other beloved series like Devil May Cry were disappearing from the spotlight. This culminated in a string of forgettable years for the once-dominant developer. Yet, amidst this darkness, a transformation was brewing. By rethinking its strategy, embracing a new game engine, and committing to both fans and innovation, Capcom began an extraordinary turnaround, emerging as one of the most consistent and celebrated developers in gaming today.

Resident Evil Lost Its Way

By 2016, Capcom had hit a low point. The year’s major Resident Evil release, Umbrella Corps, was an online co-op shooter that was met with scathing reviews. Meanwhile, Street Fighter 5 alienated longtime fans with its lackluster content and poor online features. Even the return of Frank West in Dead Rising 4 could not save the series from its final entry.

For years, Resident Evil struggled with diminishing critical reception despite strong sales. The survival horror series had veered too far into action territory, culminating in titles like Resident Evil 6, which failed to balance the needs of both action and horror fans. Director Yasuhiro Ampo reflected on this period, saying, “What the fans and players wanted from the series was getting a little bit separate from what we were making.”

The struggles extended beyond survival horror. Street Fighter 5 launched with minimal single-player content and unpolished online functionality, leaving fans frustrated. Similarly, Devil May Cry had fallen into decline, with the 2013 reboot by Ninja Theory receiving a mixed reception. Capcom’s attempts to capture Western audiences with titles like Lost Planet and Asura’s Wrath also fell flat. It was clear a fundamental change was needed.

Street Fighter 5: The Turning Point

By the mid-2010s, Capcom began enacting strategy-shifting changes to rebuild its reputation. Street Fighter 5, though initially troubled, became a testing ground for new ideas under director Takayuki Nakayama and producer Shuhei Matsumoto. While they couldn’t transform the game entirely due to development constraints, they focused on fixing major issues and using the game as a “lab” to plan for Street Fighter 6.

Nakayama noted, “We couldn’t really make any major pivots or shifts, so we had to proceed and move forward in the direction we were currently in.” Instead of abandoning Street Fighter 5, the team introduced updates like improved netcode, new mechanics such as V-Shift, and character rebalances. Matsumoto explained, “We tried different things during the development of Street Fighter 5 to see if it worked, and then we took the things that did work and applied that to Street Fighter 6.”

This iterative approach paid off. By learning from their mistakes with Street Fighter 5, Capcom launched Street Fighter 6 in 2023 to universal acclaim, cementing the franchise’s resurgence.

Monster Hunter Took Over the World

At the same time, Capcom undertook a company-wide reorganization to prepare for a new generation of games. Central to this shift was the development of the RE Engine, which replaced the aging MT Framework. This move was paired with a global mandate to create games that appealed to audiences worldwide, not just specific regions.

No series exemplifies this transformation better than Monster Hunter. While previously a massive hit in Japan, the franchise struggled to break into Western markets due to its focus on handheld consoles and region-specific content. Recognizing the opportunity presented by improved online infrastructure, Capcom launched Monster Hunter: World in 2018. The game delivered AAA-quality action, larger areas, and simultaneous global releases, ensuring it appealed to a broad audience.

Executive producer Ryozo Tsujimoto highlighted the importance of focus testing: “For World, we conducted focus tests across the world, and some of the feedback really affected how we designed our game systems.” Changes like visible damage numbers and streamlined systems made Monster Hunter more accessible without sacrificing its core identity. The result was unprecedented success, with World and its 2022 follow-up, Monster Hunter Rise, selling over 20 million copies each.

Resident Evil 7: A Return to Horror

While Monster Hunter found success by broadening its appeal, Resident Evil took a different route. Under the guidance of executive producer Jun Takeuchi, the series returned to its survival horror roots with the groundbreaking Resident Evil 7. The decision to shift to a first-person perspective gave the game a fresh identity while restoring the tension and fear that had defined earlier entries.

“We cannot underestimate how critical it is for the series to be scary and about survival,” Ampo stated. The gamble paid off, with Resident Evil 7 receiving praise for its atmospheric Southern Gothic setting and unsettling tone.

Capcom complemented this return to horror with critically acclaimed remakes of Resident Evil 2, Resident Evil 3, and Resident Evil 4, which modernized the classics while respecting their legacies. Despite initial hesitation about remaking Resident Evil 4, the team succeeded in refining its action-horror balance, further solidifying the franchise’s dominance.

Devil May Cry and the RE Engine Revolution

Another cornerstone of Capcom’s resurgence was the launch of the RE Engine. Designed to streamline development and enable rapid iteration, the engine powered visually stunning and mechanically refined games across multiple genres. For Hideaki Itsuno, director of Devil May Cry 5, the engine was instrumental in crafting the “coolest” action game possible.

“Devil May Cry is about being cool,” Itsuno explained. “The RE Engine allowed us to distill everything cool into the game, from visuals to gameplay.” The result was a critical and commercial hit that revitalized the franchise and showcased Capcom’s technical prowess.

A New Capcom Golden Age

Since 2017, Capcom has achieved an almost unprecedented streak of critical and commercial successes, including Monster Hunter: World, Resident Evil 2 Remake, Devil May Cry 5, and Street Fighter 6. This consistency is a testament to the company’s renewed focus on global audiences, innovative technology, and a commitment to preserving each franchise’s core identity.

As Monster Hunter producer Tsujimoto aptly put it, “Capcom is going through a golden era. Now we have to do everything we can so that this lasts one more year, one more year, and every year, one more year.”

Matt Kim is IGN's Senior Features Editor.