I for one am all for the RE series shifting to act 2. The first story arc has lasted for 13 years (1996-2009) and is long overdue.
I'm against story arcs lasting for too long. Just look at the Metal Gear series! The whole arc spanned a whopping 21 years (1987-2008)! This means that those devoted fans that followed the entire series can no longer be younger than the late 20s by the time they get their hands on MGS4.
Each story arc should last no longer than 10 years since that's the typical span of a player's childhood. (From 8 to 18 years old) The series should have resolved itself before the player most likely has less time for gaming due to real life issues.
The best thing to happen to the RE series, IMO, is that in each new game you play as a player from the existing gang, and that whatever happens in the previous games are automatically forgotten, just like Mario, Sonic and other series and the James Bond movies.
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