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Re:

Why Capcom Vancouver Shut Down in 2018—and What Was Confirmed About the Cancellations

Capcom closed its Vancouver studio in September 2018, reporting project-termination losses while leaving the cancelled titles unnamed.
From TheFinanceBase Team2 min to read
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Capcom Vancouver suspended operations on September 18, 2018, and the company said it was ending development projects at the studio. Contemporary reports said 158 employees were affected. Capcom attributed the decision to a review of development resources; its public notice did not name the cancelled games.

What happened to Capcom Vancouver?

Capcom’s September 18, 2018 investor notice said it was terminating development projects at Capcom Game Studio Vancouver, Inc., a consolidated subsidiary. Contemporary coverage reported that the studio stopped operating that day and its staff were laid off. A Capcom spokesperson statement reproduced by GameSpot said the studio would suspend operations effective that day and its office would close.

The closure followed a period in which the studio had been associated with the Dead Rising series. Earlier, it had operated as Blue Castle Games and developed Dead Rising 2 before Capcom acquired and renamed it, according to GeekWire.

Why did Capcom say it was closing the studio?

Capcom described the decision as part of a review of how it allocated development resources. Its notice said it was “currently reviewing the allocation of its development resources that support the production of world-class content.” The company also said it would concentrate development of major titles in Japan, pointing to investment and hiring at its Osaka headquarters. That is Capcom’s stated corporate rationale, not proof that it was the only factor behind the closure.

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How many employees were affected?

GeekWire, Game Developer, and Global News reported that 158 employees were affected. The figure comes from contemporary news reports; Capcom’s investor notice did not state a headcount. Global News also reported that employees would receive severance packages.

What did the shutdown cost Capcom?

Capcom expected to record approximately 4.5 billion yen in losses from terminating development projects as cost of sales in its consolidated results for the six months from April 1 through September 30, 2018. The amount and accounting period appear in the company’s September 18, 2018 investor notice. It was an expected loss for that reporting period, not a recurring annual cost. Capcom said its full-year business forecast remained unchanged.

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Which games were cancelled?

Capcom confirmed that it terminated projects in development, but its notice did not identify the titles or state how many projects were affected. Reports at the time discussed a possible new Dead Rising game or other unannounced work, but those reports do not establish that Capcom officially cancelled a specifically numbered sequel such as Dead Rising 5.

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What happened before the closure?

On April 20, 2018, Capcom USA announced that it was ending Puzzle Fighter. The studio said it was dedicating its focus to the Dead Rising franchise. The announcement scheduled removal of Puzzle Fighter from app stores for July 1 and server closure for July 31, 2018. Those dates preceded the studio’s September shutdown.

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Dead Rising 4: Frank’s Big Package was among the series’ recent releases noted in GameSpot’s September 2018 coverage; that edition was listed for PC, PlayStation 4, and Xbox One. Its release does not identify which projects, if any, were among the unnamed work terminated at the Vancouver studio.

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