simoniker writes "Gamasutra has put up an in-depth interview with former Clover head and Okami co-creator Atsushi Inaba, conducted before the Capcom division was dissolved. Inaba explains exactly how Capcom's Devil May Cry franchise came about: 'I actually did get on the Resident Evil 3 team, but when I joined there was a Resident Evil 1.5 project, which actually became Resident Evil 3. When the PS2 came out, the Resident Evil 3 team's name was changed to the Resident Evil 4 team. That didn't go so well, so we thought — 'what can we do with this,' and Devil May Cry was the result.'"
Relatedly, eToyChest has up a great post-mortem of Clover Studios
, giving their own reasons why they think the little studio that could was shut down.