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: World shattering Steam records and Resident Evil enjoying unprecedented popularity thanks to Village and several stellar remakes, Capcom seems virtually unstoppable. But 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 faced a significant identity crisis. Resident Evil, the pioneer of survival horror, lost its edge after Resident Evil 4. Similarly, Street Fighter, another flagship franchise, faltered with the poorly-received Street Fighter 5. The company's future looked bleak.

However, a pivotal shift in development strategy, coupled with a powerful new game engine, revitalized its beloved franchises. This marked the beginning of a period of critical and commercial success, catapulting Capcom back to the top tier of game developers.

Resident Evil's Lost Path

2016 was a difficult year. Umbrella Corps, an online co-op shooter, was met with harsh criticism from both reviewers and fans. Street Fighter 5 similarly disappointed long-time fans, falling short of the brilliance of its predecessor. And Dead Rising 4, despite Frank West's return, proved to be the final entry in the series. This marked the low point of a series of lackluster years following 2010. Mainline Resident Evil titles, while selling well, received diminishing critical acclaim. Street Fighter struggled after a poorly-received sequel, and beloved franchises like Devil May Cry were largely absent. Even Monster Hunter, a massive success in Japan, struggled to gain significant traction internationally.

This contrasts sharply with Capcom's current success. Since 2017, the company has consistently delivered hit after hit, including Monster Hunter: World, Devil May Cry 5, Street Fighter 6, and several acclaimed remakes and a successful Resident Evil reboot. Capcom's recent track record is virtually flawless.

This turnaround required more than simply learning from past mistakes; it necessitated a complete strategic overhaul, from target audience to the technology employed.

Capcom, established in 1979 as a maker 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 key franchises, culminating in the creation of Resident Evil 4, a landmark achievement in gaming.

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 rooted in horror, inspired by works like Friday the 13th and H.P. Lovecraft, it also incorporated elements of Hollywood action. This balance, unfortunately, was lost in subsequent entries. Resident Evil 5 (2009), for instance, featured Chris Redfield punching a boulder and car chases more reminiscent of Fast and Furious than survival horror. The series' identity was becoming increasingly unclear, a sentiment shared by both players and developers like Resident Evil 4 remake director Yasuhiro Ampo, a veteran of the franchise since 1996.

"Throughout the Resident Evil series, we've set different goals 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 Resident Evil 6 (2012), which attempted to cater to both action and horror fans simultaneously. Its fragmented narrative, split across six playable characters and three storylines, failed to satisfy either group, resulting in widespread disappointment.

This trend wasn't limited to Resident Evil. Following the success of Street Fighter 4, its sequel, Street Fighter 5 (2016), was criticized for its lack of single-player content and poor online functionality. The series lacked polish and suffered from a confusing approach to balance.

Other key franchises also struggled. Devil May Cry's development was outsourced to Ninja Theory for DmC: Devil May Cry (2013), a game that, despite gaining a cult following, was met with negative reactions from fans due to its altered mythology and technical shortcomings. The series was subsequently put on hold.

The mid-2010s saw Capcom struggling across its major franchises, with new titles like Lost Planet and Asura's Wrath also failing to resonate with audiences. While some bright spots emerged, such as Dragon's Dogma, the company's overall direction lacked focus.

Street Fighter 5: A Turning Point

By the mid-2010s, Capcom began implementing strategic changes to reverse its fortunes. Addressing the issues with Street Fighter 5 was a priority. Director Takayuki Nakayama and producer Shuhei Matsumoto were brought in to improve the game.

"There were challenges in the game's production," Nakayama admits. "We couldn't make major changes, so we focused on fixing pressing issues and preparing for Street Fighter 6."

Instead of a complete overhaul, the team focused on fixing critical problems. Abandoning Street Fighter 5 wasn't an option, according to Matsumoto: "It wasn't about ending Street Fighter 5 and starting Street Fighter 6. We used Street Fighter 5's development as a learning process, experimenting with different approaches to inform Street Fighter 6's design."

The team treated Street Fighter 5 as a testing ground, iteratively improving netcode, character balance, and introducing new mechanics like V-Shift. The goal was to rediscover the fun, addressing the frustration many players experienced. While simplifying the game could alienate veteran players, the strategy for Street Fighter 6 was to expand options for newcomers while retaining the depth appreciated by experienced players.

By using Street Fighter 5 as a learning experience, Street Fighter 6 (2023) launched to critical acclaim. This approach prevented repeating past mistakes, leading to a more refined and successful sequel.

Monster Hunter's Global Conquest

Around 2016, Capcom underwent an internal reorganization to prepare for a new generation of games using the RE Engine, replacing the aging MT Framework. This wasn't just a technological upgrade; it involved a commitment to creating games for a global audience, not just specific regions.

"It was a combination of factors," says Hideaki Itsuno, known for his work on Devil May Cry. "The new engine and a clear goal to create games appealing to a global market."

Capcom previously focused heavily on the perceived Western market, leading to titles that often failed to connect with audiences. The company realized the need to create games with broader appeal.

"We focused on making good games that would resonate globally," Itsuno states.

Monster Hunter perfectly exemplifies this new global strategy. While it had a dedicated Western fanbase, it was significantly more popular in Japan. This was partly due to the popularity of handheld consoles in Japan, which facilitated local multiplayer, a core element of Monster Hunter's gameplay.

This created a cycle: Monster Hunter's success in Japan led to region-specific content, further reinforcing its image as a primarily Japanese franchise.

However, with improved internet infrastructure and online gaming becoming prevalent worldwide, Capcom saw an opportunity. Monster Hunter: World (2018), released simultaneously globally on PS4, Xbox One, and PC, marked a significant shift. It offered AAA console quality visuals, larger environments, and more challenging monsters.

"Calling it Monster Hunter: World was a nod to our intention to reach a global audience," explains Ryozo Tsujimoto, the series' executive producer.

Monster Hunter: World's success wasn't accidental. The team focused on making the game more accessible to a wider audience without compromising its core elements. The addition of damage numbers is a simple example of this approach. Monster Hunter: World and its sequel, Monster Hunter Rise, both sold over 20 million copies, a huge leap from previous entries.

"Monster Hunter is at its core an action game," Tsujimoto explains. "But for new players, it's about the journey to that feeling of accomplishment. We analyzed where players struggled and used that feedback to improve the game."

Resident Evil 7: A Return to Horror

While Monster Hunter's success was about expanding its reach, Resident Evil needed to redefine its identity. Jun Takeuchi, executive producer of the Resident Evil series, decided to return to the franchise's survival horror roots.

Yasuhiro Ampo recalls, "Around the time of Resident Evil Revelations 1 and 2, Takeuchi set the direction to return to the series' origins, focusing on survival horror."

Resident Evil 7 (2017), announced at E3 2016, marked this shift. Its first-person perspective, unsettling atmosphere, and emphasis on survival horror were a critical success, restoring the franchise's terrifying edge.

"Takeuchi emphasized the importance of making the game scary and focused on survival," Ampo explains.

Capcom didn't abandon the third-person perspective entirely. While new mainline entries remained first-person, a series of remakes, beginning with Resident Evil 2, brought back the classic third-person view. The remakes capitalized on fan demand, blending classic elements with modern gameplay and updated visuals.

The Resident Evil 2 remake was a massive success, becoming one of the best-selling games in the franchise's history. This success continued with the Resident Evil 3 remake and, surprisingly, the Resident Evil 4 remake, despite initial hesitation.

"Resident Evil 4 is beloved," Ampo admits. "We were concerned about getting it wrong, but the remake refined the action-horror balance, returning to survival horror roots while retaining thrilling action sequences."

Similarly, Hideaki Itsuno's return to Devil May Cry with Devil May Cry 5 (2019) saw a renewed focus on stylish action, challenging the trend towards overly accessible action games. The RE Engine's capabilities allowed for a significant visual upgrade and smoother gameplay.

The Catalyst for Change

"I felt action games were becoming too easy," Itsuno explains. "I wanted to create something truly cool."

Itsuno's long break from the franchise allowed him to refine his vision and utilize the RE Engine's capabilities to create a stylish and challenging action experience. The engine's rapid iteration capabilities were crucial in achieving this goal.

Ampo describes the RE Engine as "a less stressful development environment, allowing for quicker iteration and easier implementation of new tools."

This allowed for extensive trial-and-error, ensuring Devil May Cry 5's style and gameplay were as polished as possible. Itsuno aimed to distill everything he considered "cool" into the game, drawing inspiration from various sources.

"Devil May Cry is about being cool," Itsuno emphasizes. "I've incorporated everything I find cool into the game."

A New Golden Age

Since 2017, Capcom has consistently delivered critically acclaimed games. This success stems from a clear focus on creating globally appealing games using the advanced RE Engine. The company seamlessly transitions between different genres without sacrificing quality or identity.

This global focus hasn't diluted the core elements of its franchises. Resident Evil remains true to its survival horror roots, Street Fighter retains its competitive spirit, and Monster Hunter maintains its unique battle systems, all while expanding their reach to millions of new players.

Capcom's current success contrasts sharply with the struggles of many of its contemporaries. The company's transformation serves as a lesson in strategic adaptation and a commitment to quality. While Capcom stumbled, it ultimately rose stronger than ever before.

When asked about Capcom's current success, the developers expressed optimism. Nakayama describes it as an "exciting time," while Tsujimoto hopes to extend this "golden era" for years to come.