Background
During the Nintendo Entertainment System (NES) and Super Nintendo (SNES) eras, Nintendo and Capcom enjoyed a close relationship, with Mega Man as one of the NES' most prominent franchises. This closeness was partially due to Nintendo's monopoly of the video game console market, which allowed the company to compel third-party developers to release exclusive content according to Nintendo's schedule. Sega's rival Mega Drive system forced Nintendo to relax some of its restrictions on third parties with respect to the SNES. However, relations with third-party developers reached a turning point when Nintendo decided to retain a proprietary cartridge-based format for the Nintendo 64, in the face of Sony's disc-based PlayStation. Due to increased manufacturing costs and severely limited cartridge memory capacity, many third parties—Capcom included—moved to the PlayStation to start new franchises, such as Resident Evil. On this new platform, developers could create bigger games while avoiding the restriction of ordering the manufacture of proprietary cartridges through Nintendo, which could lead to under- or over-stocking inventory. This third-party abandonment allowed the PlayStation to outsell the Nintendo 64 during that console generation.
"For the growth of the gaming industry. For GameCube. These words describe our initial thoughts. In an industry where you create to amuse and entertain, do you sense a crisis about the industry's continuing regression of excitement and new stimulation?
"We believe that the regression of excitement is solely the fault and responsibility of we creators. By the same token, we believe it is also our mission and responsibility to create something that is 'worth seeing' for the user.
"In a market that has become prosaic with character dependant games and sequel games, we would like to take this opportunity to announce five new and exciting games for GameCube."
With the GameCube, Nintendo tried to reclaim third-party developers and catch up to Sony's PlayStation 2 by featuring disc-based media and powerful system hardware. However, in the first year after its launch, Nintendo only sold 4.7 million consoles. In this climate of flagging sales, Capcom held a surprise press conference in Japan in November 2002, announcing five new titles for the GameCube: P.N.03, Viewtiful Joe, Dead Phoenix, Resident Evil 4, and Killer7. The games would be developed in-house by Capcom's Production Studio 4 with Resident Evil series creator Shinji Mikami as supervisor. The lone exception was Killer7, to be produced at Grasshopper Manufacture, with Mikami as co-writer alongside director Suda51. When pressed for comment on console exclusivity, a Capcom USA representative confirmed the claim, generating the perception that Capcom was hoping to boost the GameCube's sales and reputation. A statement on their website echoed this support for GameCube. However, Capcom USA soon rescinded their confirmation, blaming it on a miscommunication with the parent company. They clarified that only Resident Evil 4 would definitely be exclusive.
Read more about this topic: Capcom Five
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