Capcom Just Quietly Dissolved Its Taiwan Game Development Studio and Nobody Noticed

Capcom Taiwan’s internal game development department appears to be dissolving, according to multiple posts from former employees on Threads showing empty offices and goodbye messages. While Capcom hasn’t made an official announcement, the evidence is mounting that the studio behind Mega Man X DiVE is shutting down its creative operations. This marks a significant shift in Capcom’s Asia strategy and raises questions about what comes next for the publisher’s regional presence.

modern game development studio office with gaming displays and creative workspace

The Empty Office and Employee Departures

Beginning in late October and continuing into early November 2025, current and former Capcom Taiwan developers took to Threads to announce their departures from the studio. One longtime employee who had worked at the company for nearly eleven years wrote that many colleagues “also graduated” (left) over the past weekend. Other posts showed farewell gatherings with cleared-out development offices and emotional messages thanking the company for the opportunity to work on beloved gaming franchises.

These weren’t cryptic hints or speculation. The posts included photos of empty workstations, cleared desk spaces, and team members celebrating their final days together. The consistency and timing of these announcements, all happening within days of each other, strongly suggests this wasn’t a gradual reduction in staff but rather a coordinated shutdown of the development division.

Capcom Taiwan is still recruiting for IP licensing and authorization roles, which suggests the company intends to maintain some presence in the region focused on business development and legal work. But the core game development team appears to be completely gone.

What Capcom Taiwan Actually Made

Capcom Taiwan’s development division was best known for creating Mega Man X DiVE, a mobile game that launched in 2020 and later received an offline version for home consoles called Mega Man X DiVE Offline. The game took players inside a digital database and had them experience mashup encounters featuring characters from across the Mega Man franchise. It was a creative mobile title that found success in Asian markets.

Beyond the Mega Man title, the studio attempted to diversify its portfolio. According to LinkedIn profiles of former team members, Capcom Taiwan was working on RE Engine-based projects for both mobile and home consoles. The RE Engine is Capcom’s proprietary technology that powers games like Resident Evil, so these were meant to be more substantial projects than mobile spin-offs.

However, there’s no concrete evidence suggesting what these projects were. Some speculation pointed toward new Mega Man titles, but Rockman Corner, the authoritative source on Mega Man news, couldn’t find solid confirmation. These RE Engine projects appear to have been abandoned sometime in 2024, well before the recent office closure.

The Failed NFT Experiment

Capcom Taiwan also briefly pursued an NFT project based on Mega Man X DiVE, jumping on the blockchain gaming trend that dominated conversations in the early 2020s. This initiative was quietly dropped without fanfare, part of the broader industry realization that NFT games were a dead end commercially and critically. The studio’s willingness to pivot away from that experiment quickly showed decent judgment, even if the choice to pursue it initially looked questionable in retrospect.

gaming development technology and digital workspace with creative setup

The Minimum Studios Acquisition Context

Capcom’s apparent shift away from game development in Taiwan becomes even more interesting when you consider what the company did in parallel. About a year ago, in June 2024, Capcom acquired a two-thirds majority stake in Minimum Studios, a 3DCG animation and visual effects company also based in Taipei. This wasn’t some small acquisition. Capcom clearly considered Minimum Studios important enough to integrate it into the corporate structure.

Minimum Studios specializes in animation work for video games, films, and advertising. The company had previously provided animation for several Capcom titles including Resident Evil Village, the Resident Evil 4 remake, and Dragon’s Dogma 2. Their work is solid enough that major publishers trust them with flagship franchise cutscenes and in-engine cinematics.

So what emerges is a picture of Capcom’s Taiwan strategy: move away from game development and toward animation, CG production, and asset creation. Rather than having a studio trying to make entire games from the ground up, Capcom appears to be consolidating its Taiwan operations around specialized technical services. It’s a more efficient use of regional talent and capital.

What Actually Happened to Mega Man X DiVE

The original global version of Mega Man X DiVE operated as an online service game, which means it required server connections and featured battle pass seasons, limited-time events, and other live service elements. This model worked in parts of Asia where the game launched in 2020, but the global version shut down at some point, presumably because it couldn’t maintain a profitable player base outside Asian markets.

Capcom responded by releasing Mega Man X DiVE Offline, which stripped away the online components and released the game as a one-time purchase rather than a live service. But by that point, the studio’s development pipeline was already shifting elsewhere. The Offline version was essentially a port of existing content rather than new development.

Why Dissolve a Development Studio?

From a business perspective, Capcom’s decision makes sense even if it’s not ideal for employees. Capcom’s core business is developing AAA console and PC games, publishing titles globally, and maintaining franchises like Resident Evil, Monster Hunter, and Street Fighter. Mobile gaming, while potentially lucrative, is a different market requiring different expertise and business models.

Capcom Taiwan’s development output over five years was essentially one major mobile title and several spin-offs. That’s not a strong return on investment for maintaining a full development studio. The global online version of X DiVE failed to find audience outside Asia. The RE Engine projects were cancelled or never reached completion. Meanwhile, Capcom’s core business is booming with the success of Dragon’s Dogma 2, Monster Hunter Wilds, and the RE Engine-powered remake pipeline.

By consolidating around Minimum Studios’ animation capabilities and moving game development back to Japan and the US, Capcom can maintain its Taiwan presence for legitimate business reasons while optimizing costs. It’s cold corporate logic, but it’s logical.

video game development environment with team collaboration and creative tools

What This Means for Mega Man’s Future

There was speculation that the RE Engine projects in development at Capcom Taiwan might have been new Mega Man games. If that’s true, those projects are now dead. Future Mega Man games will need to be handled by Capcom’s main development teams in Japan or by trusted external partners. That’s not necessarily bad news, though. Some of the best Mega Man games in recent years came from external developers anyway.

Mega Man 11 was developed internally but released in 2018 to middling reviews. Mega Man Legacy Collection proved there’s appetite for retro Mega Man experiences. And the Mega Man Zero/ZX collection showed fans love classic games remastered. So while losing a dedicated Taiwan team working on new original Mega Man content is sad, it doesn’t spell doom for the franchise. Capcom will likely keep Mega Man alive through remasters, ports, and occasional new entries handled by primary development teams.

FAQs

Is Capcom Taiwan closing completely?

No, Capcom Taiwan is not shutting down entirely. The company is still recruiting for IP licensing and authorization roles, which suggests their business development operations will continue. Specifically, it’s the internal game development division that’s being dissolved.

What happened to employees at Capcom Taiwan?

Multiple former employees announced their departures on Threads showing photos of empty offices and farewell gatherings. One employee with nearly eleven years at the company noted that many colleagues left over the same weekend. Capcom has not publicly announced severance packages, relocation assistance, or other support for affected workers.

Was Capcom Taiwan making any games?

Yes, Capcom Taiwan developed Mega Man X DiVE, a mobile game that launched in 2020, and later Mega Man X DiVE Offline. The studio was also working on RE Engine-based projects for mobile and home consoles, though these appear to have been cancelled sometime in 2024.

Why would Capcom dissolve a game development studio?

Capcom’s output from Taiwan over five years was relatively limited, with the global version of Mega Man X DiVE ultimately shutting down. The studio’s planned RE Engine projects were cancelled. Consolidating around animation services through the acquired Minimum Studios appears more profitable and aligned with Capcom’s broader strategy.

What is Minimum Studios?

Minimum Studios is a 3DCG animation and visual effects company based in Taipei that Capcom acquired a majority stake in during June 2024. The studio provides animation services for video games, films, and advertising. It has worked on cutscenes and cinematics for Resident Evil Village, Resident Evil 4 Remake, and Dragon’s Dogma 2.

Does this mean no more Mega Man games from Taiwan?

Officially, yes. Capcom Taiwan’s game development division is dissolving, so future Mega Man titles will need to be developed elsewhere. Capcom could still work with external partners or develop new Mega Man games in Japan, but the dedicated Taiwan studio is no more.

When did this happen?

Multiple employee departures were announced in late October and early November 2025. Photos showed cleared offices and farewell gatherings happening around the same time. Capcom has not made an official public announcement about the closure.

Could Capcom Taiwan return to game development?

Theoretically yes, but it seems unlikely in the near term. Capcom’s strategy appears focused on consolidating animation and CG services through Minimum Studios rather than maintaining a separate game development studio. Future restructuring is always possible, but the current trajectory suggests a permanent shift toward specialized technical services.

Conclusion

Capcom Taiwan’s dissolution represents the natural end of an experiment that never quite reached its potential. What started as an attempt to establish a regional development hub for Asian mobile gaming evolved into a one-hit wonder with Mega Man X DiVE, a cancelled RE Engine project pipeline, and a brief NFT gamble that went nowhere. Meanwhile, Capcom’s core business thrives through its main development operations and careful partnerships with specialized studios like Minimum. The company’s decision to consolidate around animation services and move game development back to headquarters is a pragmatic restructuring, even if it means losing the dedicated effort to develop new games from a Taiwan-based studio. For employees, it’s a tough situation that unfortunately reflects broader patterns in the gaming industry where regional studios often struggle to justify their existence when they can’t match the output of major internal teams. For Mega Man fans, it means future installments will need to come from elsewhere. But the franchise itself isn’t going anywhere—Capcom has too much invested in Mega Man to let it fade entirely.

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