Capcom sucks the same way that Konami and Namco and Squaresoft and Tecmo suck nowadays.
In each case,they all used to make almost uniformly amazing games back in the 8-bit and 16-bit eras. In three of their cases, they also produced amazing classic arcade games. But ever since the Playstation One era, they have begun to go downhill. By the PS2 era, I think all of those companies were already sliding so far downhill that it was irreparable. And by this generation, they have proven without a doubt that they do, indeed, suck ass now.
Which is incredibly sad. We're talking about the company that brought us Mega Man, and Street Fighter, and Buster Bros., and Final Fight, and Ghouls n Ghosts, and Darkstalkers, and some really amazing Disney based games on NES. We're talking about the company that brought us Castlevania, and Contra, and Gradius, and Twinbee, and Goemon, and some really excellent arcade Beat 'Em Ups. Or the company that brought us Final Fantasy, and Chrono Trigger, and Illusion of Gaia, and Super Mario RPG.
If you really think about that, it's damn sad. And it doesn't even have anything at all to do with Japanese developers allegedly "just not being good" anymore. No, it has to do with, in each one of their cases, those companies trying to change themselves and what they did BEST for years, to try and emulate western developers, because they see the type of sales that crap like Call of Duty makes, and they want that. They think to get that, they need to make those types of games. But the thing they're missing, is that people in the west liked them for the GOOD types of games they USED to make.
At least in Sega's case, you can make the claim that they do continue to try. They may not get it RIGHT (almost all the Sonic games they've recently made, the crappy "Golden Axe" they produced, the sub-par PS2 Shinobi, the sub-par Wii Nights game, etc.), but at least they do try.