As reported by VGC, the unannounced Resident Evil 4 remake has undergone a leadership change, due to disagreements over the game's direction. The studio in charge of development under Capcom known as M-Two will now take a smaller role behind internal team Capcom Division 1, which will now lead development on the project.
Sources told VGC that sometime in 2020, development responsibilities were shifted away from M-Two following a key project review, with Capcom Division 1 now in charge of lead development on the remake. Resident Evil 4 remake has reportedly been in development since 2018, but has yet to be officially announced by Capcom.
While the details of the disagreement over the game's direction aren't totally clear, sources believe Capcom wanted to focus on staying faithful to the original game. This is likely in response to the criticisms for Resident Evil 3 remake, which completely skipped sections from the original source material, leading poorer reception than Capcom had hoped. It seems Capcom wants to stay true to Resident Evil 4 while adding new ideas and features, much like the implementation of The Tyrant/Mr. X in Resident Evil 2 remake (as mentioned by VGC) — a new character who was positively received by fans.
M-Two isn't necessarily a team at the forefront, and not much is known about it publicly. However, we do know the team was involved with the development of Resident Evil 3 remake and is comprised of ex-Platinum employees, headed by Tatsuya Minami.
The new overhaul of Resident Evil 4 remake will likely cause the game to undergo an internal delay by up to a year, possibly pushing it to launch in 2023. Though, as VGC notes, Resident Evil 2 and Resident Evil 3 remake both suffered from similar internal overhauls during development, so this leadership shift isn't exactly cause for alarm (aside from having to wait longer).
After all, Capcom's main goal is to deliver a high quality product, and given the legacy of the original Resident Evil 4 — which is Capcom's highest rated game ever on Metacritic — the team has to nail it with this remake, especially after stumbling with 2020's Resident Evil 3.
Capcom did not respond for comment when asked by VGC.
To hold us over, Resident Evil Village (the forthcoming eighth mainline entry in the series) will launch in May 2021.