Capcom Was on Its Knees After Resident Evil 6, Now Monster Hunter Wilds Cements Its Golden Era — Here's How It Did It

With Monster Hunter: Worlds 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 faced a profound identity crisis. Resident Evil, the progenitor of survival horror, lost its edge after Resident Evil 4. Similarly, Street Fighter, another flagship franchise, faltered after the poorly-received Street Fighter 5. The company's future hung precariously in the balance.

Yet, a glimmer of hope emerged. A strategic shift in game development, coupled with a powerful new game engine, revitalized these beloved franchises, sparking years of critical acclaim and financial success that propelled Capcom back to the forefront of the gaming industry.

Resident Evil's Lost Path

2016 proved particularly challenging for Capcom. Umbrella Corps, an online co-op shooter, was met with harsh criticism from both reviewers and fans. Street Fighter 5 similarly disappointed longtime fans, falling short of the brilliance of its predecessor, Street Fighter 4. Even the long-awaited return of Frank West in Dead Rising 4 couldn't prevent it from becoming the series' final new entry.

This marked the nadir of a series of underwhelming years stretching back to 2010. Mainline Resident Evil titles, despite strong sales, received increasingly negative reviews. Street Fighter's struggles continued with a poorly-received installment, and core franchises like Devil May Cry were largely absent. Meanwhile, Monster Hunter, while hugely popular in Japan, struggled to gain significant traction in international markets.

This contrasts sharply with the Capcom we know today. Since 2017, Capcom has consistently delivered hit after hit, garnering both critical praise and impressive sales figures across its most renowned franchises. This includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, and a trio of acclaimed remakes, along with a successful Resident Evil soft reboot. Capcom's recent track record is practically flawless.

This resurgence wasn't merely a matter of learning from past mistakes. Capcom fundamentally overhauled its strategy, from target audience to technology, to achieve this remarkable turnaround. To understand this transformative shift, IGN spoke with four of Capcom's leading creative figures to uncover the story of how one of gaming's most successful companies overcame adversity and emerged stronger than ever.

Capcom, established in 1979 as a manufacturer of electronic game machines, or "capsule computers," ascended to prominence in the 1980s and 1990s with 2D titles such as Street Fighter and Mega Man, successfully transitioning to 3D with games like Resident Evil. Between 2000 and 2010, Capcom skillfully 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, ingeniously blending horror and action. However, this blend significantly altered the course of the Resident Evil franchise. At its core, Resident Evil 4 is a horror game, drawing inspiration from sources like Friday the 13th, H.P. Lovecraft, and John Carpenter's works. Yet, interwoven with its horror elements are incredibly effective moments of Hollywood action cinema.

Unfortunately, this delicate balance between horror and action was lost in subsequent installments. In 2009's Resident Evil 5, Chris Redfield punches a boulder the size of a car with his bare fists, and infected enemies are gunned down in a car chase sequence more reminiscent of Fast and Furious than a frightening encounter. The series' identity was fading, 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've set different goals and challenges for each game," Ampo explains. "But this time, many of us felt that what fans wanted was diverging from what we were creating."

This lack of direction resulted in games like 2012's Resident Evil 6, which attempted to cater to both action and horror fans simultaneously. By splitting the game between six playable characters and three distinct storylines, it failed to achieve the crucial balance between genres, leaving neither group fully satisfied. Online discussions reflected fan disappointment with the action-heavy direction, while developers continued experimenting with online co-op spin-offs.

This decline wasn't limited to Capcom's survival horror franchise. Following the success of Street Fighter 4, lauded for its unique art style and compelling cast, Capcom failed to replicate this triumph with its sequel. Street Fighter 5 (2016) was criticized for its barebones single-player content and subpar online functionality. Fans pointed to a lack of polish and a confusing approach to balance, resulting in a frustrating overall experience.

The struggles extended beyond Street Fighter and Resident Evil. Almost every major franchise faced challenges. Devil May Cry, a popular action game, experienced diminishing returns, leading Capcom to outsource the development of 2013's DmC: Devil May Cry to Ninja Theory. While gaining cult status, the game's fresh take on mythology, redesigned protagonist, and sluggish frame rate drew significant criticism. The series was subsequently shelved.

This period defined Capcom's early-to-mid 2010s. Key franchises struggled to repeat past successes, while other titles languished. New games targeting the Western market, such as Lost Planet and Asura's Wrath, also failed to resonate. While titles like Dragon's Dogma offered occasional bright spots, Capcom's overall focus lacked direction. Change was clearly needed.

Street Fighter 5: A Turning Point

By the mid-2010s, Capcom initiated several strategic changes that would fundamentally alter its trajectory. The first step involved addressing immediate issues, beginning with Street Fighter 5. Director Takayuki Nakayama and producer Shuhei Matsumoto were brought in to restore stability.

While not involved from the outset, they inherited a game requiring significant improvements to regain fan trust.

"There were challenges during production," Nakayama admits. "We couldn't make major changes, so we had to proceed in the current direction, limiting our options."

These constraints limited their scope. Instead of transforming Street Fighter 5 into a top-tier game, they focused on fixing critical issues, biding their time until work on Street Fighter 6 could begin.

"We lacked time to address problems in Street Fighter 5," Nakayama explains. "We had to wait for those ideas to be incorporated into the conceptual phases of Street Fighter 6."

The question arises: why not simply abandon Street Fighter 5 and start anew? According to Matsumoto, that wasn't an option. "There was no sense of ending Street Fighter 5 and focusing solely on Street Fighter 6. While working on Street Fighter 5, we were determining what we wanted to achieve in Street Fighter 6 content-wise," he clarifies.

"We experimented during Street Fighter 5's development, applying successful elements to Street Fighter 6. It was an ongoing process that helped us define our direction for the next installment."

The team treated Street Fighter 5 as a learning experience, using it to identify and correct design flaws. Numerous updates followed, addressing netcode, character balance, new characters, V-Triggers, and even new mechanics like V-Shift, ultimately tested in Street Fighter 5 before implementation in Street Fighter 6.

The overarching goal was to rediscover the fun. Street Fighter 5 had become frustrating, and the team aimed to create a more enjoyable experience. "Fighting games are fun, and with practice, become even more enjoyable," Matsumoto notes. "However, Street Fighter 5 lacked a clear path to that level of enjoyment."

Previous attempts to increase accessibility by lowering difficulty alienated longtime fans. Street Fighter 6 expanded tools for new players while retaining features appreciated by experienced players. Instead of a quick fix, the team used Street Fighter 5 as a testing ground, resulting in Street Fighter 6's critical acclaim.

To prevent similar situations, Capcom implemented significant strategic changes.

Monster Hunter's Global Domination

Around the launch of Street Fighter 5 in 2016, Capcom underwent an internal restructuring to prepare for a new generation of games. This involved the introduction of the RE Engine, replacing the aging MT Framework. This change went beyond technology; it included a mandate to create games for a global audience, not just existing regional fanbases.

"Several factors converged," says Hideaki Itsuno, a renowned Devil May Cry director. "The engine change and a clear goal to create games for the global market—games that everyone would enjoy."

Capcom's previous approach, particularly during the PS3 and Xbox 360 era, focused heavily on the perceived Western market. While Resident Evil 4's action-heavy style was successful, spin-offs like Umbrella Corps and the Lost Planet series failed to capture the Western market. Capcom realized the need to appeal to a broader, global audience.

"We focused on making good games that would reach people worldwide," Itsuno emphasizes.

The period leading up to 2017 was pivotal. The organizational and engine changes converged, and the launch of Resident Evil 7 marked the beginning of Capcom's resurgence.

No franchise better exemplifies this global ambition than Monster Hunter. While possessing a dedicated Western fanbase, it was significantly more popular in Japan. This wasn't intentional; several factors contributed.

Monster Hunter's success on the PSP, particularly Monster Hunter Freedom Unite, played a crucial role. Japan's robust handheld gaming market, coupled with the ease of local multiplayer on handheld consoles, contributed to its popularity. This facilitated frequent gameplay with friends, a core element of Monster Hunter's appeal.

"Twenty years ago, network connections in Japan weren't easy, and online Monster Hunter wasn't widespread," explains Ryozo Tsujimoto, executive producer of the series. "Handheld consoles made multiplayer easy without internet access, allowing players to enjoy the game even when online play wasn't readily available."

This created a cycle. Monster Hunter's success in Japan led to region-specific content and events, reinforcing its image as a Japanese-centric brand.

However, the Western fanbase existed and craved access to the same content. With improved internet infrastructure and the prevalence of online play, Tsujimoto and the team saw an opportunity to launch a globally accessible Monster Hunter game.

Monster Hunter: World (2018), released on PS4, Xbox One, and PC, represented a significant shift. Designed for powerful consoles, it offered enhanced graphics, larger environments, and more challenging monsters.

"The name Monster Hunter: World reflects our intention to appeal to a global audience," Tsujimoto explains. "We aimed for simultaneous worldwide release and avoided region-exclusive content."

Beyond simultaneous release, the team analyzed player feedback to improve accessibility. A simple addition—displaying damage numbers—proved impactful. Monster Hunter: World and its sequel, Monster Hunter Rise, both sold over 20 million copies, a massive increase from previous installments.

"We carefully analyzed where players struggled, gathered feedback, and conducted our own research," Tsujimoto says, explaining the changes implemented in Monster Hunter: Worlds and Rise.

Resident Evil 7: A Return to Horror

Monster Hunter had a winning formula; the challenge lay in global appeal. For Resident Evil, the team had to choose between action and survival horror. Jun Takeuchi, executive producer of Resident Evil, made the decision.

"Around the time of Resident Evil Revelations 1 and 2, I was experimenting with different approaches," recalls Yasuhiro Ampo. "Jun Takeuchi set the direction: Resident Evil needed to return to its roots, focusing on survival horror."

Resident Evil 7, announced at E3 2016, marked a return to first-person perspective, creating a claustrophobic and unsettling atmosphere. The shift to first-person brought back a crucial element: fear.

"Takeuchi emphasized the importance of scariness and survival," Ampo says. "Resident Evil 7 would return to its origins, prioritizing survival elements, while also experimenting with new ideas."

The game was a success, reviving the survival horror elements of the series. Resident Evil 7's unsettling atmosphere ranks it among the scariest in the franchise.

Capcom didn't abandon the third-person perspective entirely. While new mainline titles remained first-person, a series of remakes, starting with Resident Evil 2, offered a third-person experience. Fan-made projects demonstrated a clear demand for remakes.

"People really wanted this," Ampo reveals. "Producer Yoshiaki Hirabayashi came up with the slogan: 'We'll do it.'"

The Resident Evil 2 remake blended horror, action, and puzzles, introducing a menacing Tyrant system. It became the second best-selling Resident Evil game.

This success was followed by a Resident Evil 3 remake, but the decision to remake Resident Evil 4, a game still considered modern, sparked internal debate.

"Resident Evil 4 was popular, so there was discussion about whether a remake was necessary," Ampo admits. "If we got it wrong, the reaction would be strong."

Despite hesitation, the Resident Evil 4 remake proved successful, refining the action-horror balance and creating a moodier, darker tone while retaining the thrilling action sequences.

Simultaneously, Hideaki Itsuno, director of Devil May Cry, observed a softening of the action genre. Devil May Cry 5 aimed to challenge this trend, leveraging the RE Engine's capabilities.

The Catalyst for Change

"I felt the action genre was becoming too kind to players," Itsuno admits. "Too much hand-holding."

Itsuno, after a decade away from the franchise, returned with a new vision and the RE Engine. "Technology changes significantly over time," he notes. "The RE Engine offered rapid development tools and photorealistic capabilities."

The RE Engine allowed for faster iteration and experimentation. Itsuno aimed to create the "coolest" action game, using trial-and-error to perfect visuals and gameplay. The engine's capabilities significantly enhanced Devil May Cry's style.

"Devil May Cry is about being cool," Itsuno says. "I've incorporated everything I consider cool—from TV, movies, comics, and sports—into the game."

A New Golden Age

Since 2017, Capcom has consistently released high-quality games. Its focus on creating globally appealing games, powered by the advanced RE Engine, has resulted in unprecedented success. The company seamlessly transitions between genres without losing its identity.

This global focus hasn't diluted the games' core elements. Resident Evil retains its survival horror, Street Fighter its competitive spirit, and Monster Hunter its unique battle systems. The audience for these franchises has expanded significantly.

When asked about a "new golden age," the directors largely agreed. Nakayama stated, "It's an exciting time at Capcom. We're focused on making things we find fun." Tsujimoto added, "Capcom is in a golden era, and we need to make it last."