This comes after a supposed overhaul of plans for the remake.
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According to sources close to, development of the as of still unannounced Resident Evil 4 remake may run afoul. It was expected that new studio, M-Two, was working on the remake for Capcom. However, their role may have been "significantly reduced" after some creative differences with Capcom Division 1, Capcom's main Resident Evil studio.

According to VGC, development on the Resident Evil 4 remake has been happening since around 2018 at M-Two. The studio also had a hand in developing the Resident Evil 3 remake for 2020. However, their main purpose was to be a dedicated Resident Evil 4 remake studio.

VGC's source tell them that M-Two's role was significantly reduced following a project review late in 2020. In their place will be Capcom's own Division 1 studio, the group that leads most mainline Resident Evil and Devil May Cry titles.

Apparently, M-Two really wanted to stick to the original Resident Evil 4 formula. This was decided following the "backlash" to the Resident Evil 3 remake. However, Capcom wants instead to see Resident Evil 4 remake be more inspired by the original with their own unique take on features. This means that Capcom would rather have some story elements and environments not necessarily confined to being exactly like the original.

As a result of this, Division 1 will now take the lead on development and overhaul a lot of what was already done for the game. This could lead to a delay for the game, possibly pushing the release as far away as 2023.

Obviously, this may not be what fans of the original Resident Evil 4 really wanted to hear. Many fans continue to praise the original release and its many ports and don't want things to be changed too drastically. This move to Division 1 from a studio that wanted to adhere to the original model may be cause for alarm amongst the fanbase.