Resident Evil
The cast of Resident Evil 6, with Leon S Kennedy front and centreCapcom

Capcom's development team Division 1 is working on a new engine to be used with virtual reality (VR) games but may still be working on Resident Evil 7 as well, according to the company's latest financial report, which also says VR is "the hottest market right now".

Division 1 typically handles Capcom's most prized IPs, including horror franchise Resident Evil. In the Integrated Report, Division 1's Jun Takeuchi included a statement, which said (via Polygon): "We are focusing our energy on challenging the virtual reality (VR) game market.

"In this terrifying world, you can twist and turn as you like, but there's no escaping the creatures closing in on you. Until you remove your VR headset and return to reality, that is.

"We delivered this very experienced with our Kitchen VR technical demo at E3 2015. The response was excellent. Currently, we are building a new game development engine able to support VR, which is the hottest market right now, while simultaneously developing titles for current game consoles. We have just set sail on our latest voyage."

Kitchen is one of the most well-known VR demos, showing off the panic-inducing capabilities of VR when it comes to the horror genre specifically. The final part of Takeuchi's message is a reference to the development of a Resident Evil 2 remake, which was announced earlier in 2015, but also offers hope to fans that Resident Evil 7 is in the works as well.

The series' 20th anniversary is marked in 2016, which Capcom is celebrating with the release of multiplayer shooter Resident Evil: Umbrella Corps and a remake of Resident Evil 0.

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