Considering how many Resident Evil games there are, I doubt that. Heck, look at Resident Evil Gaiden on the Gameboy. I can't say for sure how much it sold in Japan or worldwide (since the data is missing) but I doubt it was an even average amount.
As for the shooter market being oversaturated, that's something that's been proven to be false over and over and over again. Halo 3 is the perfect example for this. During the 2007 holiday season, Halo 3 was going up against another huge shooter that had a humongous launch and ended up being very successful (Call of Duty 4). Was Halo 3 hurt by this? No, it had the biggest launch in videogame history and is now on its way to selling over 10 million copies.
Capcom is just being smart, and I don't think most people realize that. Sure, they could satisfy the faithful fanboys by keeping its survival horror theme. Or they could try to make a blockbuster and keep themselves from going bankrupt. Hmm...which would you choose if you were Capcom? Nintendo chose success over the satisfaction of a couple fanboys, why do people expect differently from Capcom?
All the charts, software sales, and revenue reports are continually showing that western and European companies have completely displaced Japanese companies as the leaders of the market. Only the first party and former first party Japanese companies (Sony, Nintendo, and Sega) are shown to have any consistent software sales worldwide.
Look at Capcom's biggest successes this generation on home consoles. Dead Rising, Lost Planet, Devil May Cry, and Mega Man 9 have all kept Capcom alive. The main similarity between all these games is that they saw most of their sales in America and Europe, where software and hardware sales are growing exponentially instead of stagnating and/or shrinking.
One would also expect Capcom to try and increase their presence in Europe, where the market is growing rapidly and the Euro is rapidly rising against the Yen. The sales for Umbrella Chronicles were surprisingly high in PAL, and it's likely that a lot of these sales were from Europe (rather than Korea/Australia).
I've probably gone on too long. It's a great decision, and most companies would rather make money than satisfy a minority.
