Capcom Vancouver's Dead Rising 4 sold half as expected — so Capcom closed the studio

Blue Castle Games was founded in 2004 in Burnaby, British Columbia, by Robert Barrett with 12 staff. The studio built a reputation with baseball titles The Bigs and MLB 2K8, then partnered with Capcom to develop Dead Rising 2 (2010). The game was a critical and commercial success, and Capcom acquired the studio outright, renaming it Capcom Vancouver. The team grew to 200 employees.

Capcom Vancouver developed Dead Rising 3 (2013, Xbox One launch title) and Dead Rising 4 (2016). Dead Rising 4 was a significant departure from the series — it removed the timer system that had defined the franchise's tension, replaced the original voice actor of protagonist Frank West, and introduced a lighter, more comedic tone. The game received 'mixed or average' reviews (Metacritic 72/100) and sold less than 1 million units by April 2017, against Capcom's internal target of 2 million.

The underperformance of Dead Rising 4 and a cancelled mobile title, Puzzle Fighter, left the studio without a sustainable project. In February 2018, Capcom laid off 30% of the Vancouver staff. The remaining team was working on a sequel, Dead Rising 5, set between Dead Rising 2 and 3 in Mexico. On September 18, 2018, Capcom announced the closure of Capcom Vancouver, estimating the cost of cancelled projects at ¥4.5 billion (approximately US$40 million).

A skeleton crew stayed through January 2019 to wrap up remaining work. Development of Dead Rising 5 was cancelled, and the franchise's future was consolidated at Capcom's Japan studios. The closure of Capcom Vancouver marked the end of a 14-year studio that had once been one of Canada's most prominent game developers, destroyed by a single game that sold half as well as it needed to.