In a world where horror games have devolved into on-the-rails jump scares, Capcom is embracing emerging tech to build a new nightmare for gamers. The video game publisher and developer's Development Division 1 unit, which houses the group behind the Resident Evil series, is building out a brand new engine that'll support the development of virtual reality experiences.

In its Integrated Report 2015, Capcom's Development Division 1 unit stated that it wants to create "must-play games" and put on the display the true value of engaging games. The studio wants to answer consumer demand for more innovation by delivering more than "superficial responses."

To deliver such innovation, Division 1 is locked onto leveraging VR. The engine will support the development of traditional video games, including titles for current gen hardware.

"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," states the studio. "We delivered this very experienced with our 'KITCHEN' VR technical demo at E3 2015."

The studio notes that VR is still an emerging sector, but it's looking forward to tackling the challenges of leveraging the tech by forming a team that's "similar to a band of pirates." 

"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," states the studio.

Division 1 is one of four major game development sectors inside of Capcom, the publisher explained in the report. The service-oriented Division 2 pushes the integration of operations, development and management.

Development Division 2 focuses on the fun and whimsical. The group will develop new Monster Hunter and Ace Attorney in an effort to deliver "a new dimension of fun." Division 4 will drive Capcom's licensing efforts in China and other Asian markets.