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 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 suffered a profound identity crisis. Resident Evil, the pioneer of survival horror, lost its edge after Resident Evil 4. Similarly, Street Fighter, another flagship franchise, stumbled with the poorly-received Street Fighter 5. The situation looked dire; the end for Capcom and its beloved games seemed imminent.

However, a glimmer of hope emerged. A strategic shift in game development, coupled with a powerful new game engine, revitalized its iconic franchises, igniting years of critical acclaim and financial success, catapulting Capcom back to the top tier.

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, falling far short of the brilliance of its predecessor, Street Fighter 4. Even the long-awaited return of Frank West in Dead Rising 4 proved to be the series' final new entry.

This marked the nadir of a series of underwhelming years for Capcom, starting around 2010. Mainline Resident Evil games received increasingly negative reviews despite strong sales. Street Fighter faltered, and beloved franchises like Devil May Cry were largely absent. Meanwhile, Monster Hunter, while hugely popular in Japan, struggled to gain traction internationally.

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. This remarkable run includes Monster Hunter: World, Devil May Cry 5, Street Fighter 6, several industry-leading remakes, and a critically acclaimed Resident Evil soft reboot. Capcom’s recent success appears almost effortless.

This turnaround required more than just learning from past mistakes; Capcom had to completely overhaul its strategy, from target audiences to the technology employed. IGN spoke with four leading Capcom creatives to understand this transformative journey—how one of gaming's giants stumbled, fell, and rose stronger than ever.

Founded in 1979 as a manufacturer of electronic game machines, Capcom 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 classic 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, masterfully blending horror and action. However, this blend significantly altered the course of the Resident Evil franchise. While fundamentally a horror game, 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 installments.

In 2009's Resident Evil 5, Chris Redfield punches a boulder the size of a car, and infected enemies are gunned down in a car chase more reminiscent of Fast and Furious than a terrifying horror scenario. 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 franchise 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 a disconnect between what fans wanted and what we were creating."

This lack of direction led to games like 2012's Resident Evil 6, which attempted to please both action and horror fans. By splitting the game into three storylines with six playable characters, it catered to both genres but ultimately satisfied neither. Online fan disappointment was palpable, while developers continued experimenting with online co-op spin-offs.

This decline wasn't limited to Resident Evil. Following the success of Street Fighter 4, Capcom again failed to replicate that achievement with its sequel. Street Fighter 5 (2016) was criticized for its lack of single-player content and poor online functionality. Fans pointed to a lack of polish and confusing balance, resulting in a frustrating experience.

The struggles extended beyond Street Fighter and Resident Evil. Devil May Cry, a popular action franchise, saw diminishing returns, leading Capcom to outsource DmC: Devil May Cry (2013) to Ninja Theory. Although gaining cult status, the game's fresh take on the series' mythology, redesigned protagonist, and low frame rate were poorly received, shelving the franchise for years.

The early to mid-2010s were a period of misfortune for Capcom. Key franchises struggled to recapture past successes, while others were sidelined. New titles aiming for the Western market, such as Lost Planet and Asura's Wrath, also failed to resonate. While there were exceptions, like Dragon's Dogma, Capcom's focus lacked direction.

Change was clearly needed.

Street Fighter 5: The Lost Cause

By the mid-2010s, Capcom began implementing strategic changes that would dramatically alter its fate. The first step was addressing the immediate issues, starting with Street Fighter 5. Director Takayuki Nakayama and producer Shuhei Matsumoto were brought in to help stabilize the game.

While not involved from the outset, they inherited a game in desperate need of repair to regain fan trust. "There were challenges in the game's production," Nakayama admits. "We couldn't make major changes, so we had to proceed with existing plans, limiting our options."

These limitations severely restricted their ability to transform Street Fighter 5. Instead of creating a top-tier game, their work focused on fixing critical issues and laying the groundwork for Street Fighter 6.

"We lacked the time to address problems in Street Fighter 5," Nakayama explains. "We had to wait until the conceptual phase of Street Fighter 6 to properly address these issues."

The question arises: why not abandon Street Fighter 5 and start fresh on a sequel? According to Matsumoto, abandoning the project wasn't an option. "It wasn't about ending Street Fighter 5 and focusing solely on Street Fighter 6," he says. "While working on Street Fighter 5, we were figuring out what we wanted to do with Street Fighter 6."

"We used Street Fighter 5's development as a process to learn what we wanted for the next game," Matsumoto continues. "We tested things in Street Fighter 5, and applied what worked to Street Fighter 6."

Street Fighter 5 essentially became a testing ground for new ideas. Numerous updates followed, from netcode improvements and character rebalances to new characters, mechanics, and even the V-Shift defensive move, initially considered for Street Fighter 6 but tested in Street Fighter 5.

The ultimate goal was to rediscover the fun. Street Fighter 5 had become frustrating, so the team focused on making the game enjoyable. "Fighting games are fun, and become more enjoyable with experience," Matsumoto notes. "But Street Fighter 5 lacked a clear path to that enjoyable level."

Previous attempts to increase accessibility by lowering the difficulty alienated veteran players. Street Fighter 6 aimed to provide both new and experienced players with engaging experiences. Instead of cutting losses, Nakayama and Matsumoto used Street Fighter 5 as a learning experience, leading to Street Fighter 6's critical acclaim.

To avoid repeating such situations, Capcom implemented significant strategic changes.

Monster Hunter Took Over The World

Around the time of Street Fighter 5's launch, Capcom underwent an internal reorganization to prepare for a new generation of games powered by the RE Engine, replacing the aging MT Framework. This wasn't just a technological shift; it involved a mandate to create games for a global, not just regional, audience.

"Several factors converged," says Hideaki Itsuno, known for his work on Devil May Cry. "The engine change and a clear goal to create globally appealing games."

Capcom's previous approach during the PS3 and Xbox 360 era focused heavily on the Western market, resulting in titles like Umbrella Corps and Lost Planet that ultimately failed to gain traction. Capcom realized the need to create games appealing to a worldwide audience, not just Western gamers.

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

Itsuno highlights the period leading up to 2017 as pivotal. "The organizational and engine changes came together," he says. Resident Evil 7's launch marked the beginning of Capcom's renaissance.

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

Monster Hunter's success on the PSP, particularly Monster Hunter Freedom Unite, played a crucial role. The handheld market was stronger in Japan, leading to increased local multiplayer opportunities, a key element of Monster Hunter's appeal.

"Twenty years ago, network connections in Japan weren't readily available," explains Ryozo Tsujimoto, executive producer of the Monster Hunter series. "Handhelds made multiplayer easy, even without internet access."

This created a feedback loop. Monster Hunter's success in Japan led to region-specific content, further reinforcing its image as a Japanese-only brand.

However, a significant Western fanbase existed, and with improved internet infrastructure, Tsujimoto saw an opportunity. Monster Hunter: World (2018), released simultaneously worldwide on PS4, Xbox One, and PC, represented a massive shift for the franchise.

"Calling it Monster Hunter: World was a nod to our desire to appeal to a global audience," Tsujimoto reveals. "We aimed for simultaneous worldwide release and avoided region-exclusive content."

The team conducted worldwide focus tests, incorporating feedback into the game's design. Simple changes, like displaying damage numbers, significantly impacted the game's global appeal. Monster Hunter: World and its sequel, Monster Hunter Rise, both sold over 20 million copies, a massive leap from previous installments.

"Monster Hunter is at its core an action game, but we focused on making the path to that sense of accomplishment smoother for new players," Tsujimoto explains. "We analyzed where players got stuck, gathered feedback, and used that knowledge to improve Monster Hunter: Rise and Wilds."

Resident Evil 7 Began Turning Things Around

Monster Hunter's success proved the formula's viability, but applying it to other franchises required careful consideration. For Resident Evil, the decision was whether to prioritize action or survival horror. Jun Takeuchi, executive producer of Resident Evil, made the call.

"I was testing 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 this shift. Its first-person perspective, initially questioned, proved crucial in restoring the series' horror elements.

"Takeuchi emphasized the importance of making the game scary and about survival," Ampo says. "Resident Evil 7 would return to its origins, prioritizing survival."

The game was a success, though not on the level of Resident Evil 4. Its unsettling atmosphere and claustrophobic setting made it one of the scariest entries in the series.

Capcom didn't abandon the third-person perspective entirely. While new mainline entries remained first-person, a series of remakes, starting with Resident Evil 2, brought back the third-person viewpoint. Fan projects demonstrated a significant demand for remakes.

"People really wanted this," Ampo reveals. "Producer Yoshiaki Hirabayashi decided to do it."

The Resident Evil 2 remake became the second best-selling game in the franchise's history. Its success led to a Resident Evil 3 remake, and eventually, the Resident Evil 4 remake, despite initial hesitation.

"Resident Evil 4 is beloved," Ampo admits. "We were worried about getting it wrong."

The Resident Evil 4 remake was another hit, focusing on refining the action-horror balance and returning to the series' survival horror roots. The game's moodier tone and refined action sequences resonated with fans.

Simultaneously, Hideaki Itsuno, director of Devil May Cry, had a similar realization. After Dragon's Dogma, he saw an opportunity to create a challenging action game, utilizing the RE Engine's capabilities.

The Reason Behind The Change

"I felt action games were becoming too easy," Itsuno admits. "Too kind to players."

Itsuno's return to Devil May Cry after a decade resulted in Devil May Cry 5, one of the franchise's most successful titles. The RE Engine's photorealistic capabilities and rapid development tools allowed for increased stylistic freedom.

"Devil May Cry is about being cool," Itsuno says. "I tried to distill everything I consider cool into the game."

Ampo describes the RE Engine as designed for a less stressful development environment, allowing for quicker iteration and internal tool development. This agility proved crucial for Itsuno's vision of creating the "coolest" action game.

A New Capcom Golden Age

Since 2017, Capcom has consistently delivered critically acclaimed games. This success stems from a focus on creating globally appealing titles using the technologically advanced RE Engine. The company effortlessly transitions between genres without losing its 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's unique battle systems remain intact, all while expanding their audiences.

When asked about this new golden age, the directors expressed excitement and a determination to continue this success. Nakayama calls it an "exciting time," while Tsujimoto aims to extend this era "one year at a time."