They didn't micromanage the project, which should have been a positive thing (and also the point of subcontracting the game to an outside developer).
Rearmed was well-received (same developer) despite being essentially a decently priced remake of a classic developed and released to promote the first real sequel to an 80s game.
Having bought the game, personally I'm inclined to say that it just isn't a very good game and that nostalgia over an old game many probably have never played (might have played Rearmed at most) just wasn't enough by itself for success.
I'm not even going to blame Capcom's marketing effort since it received about as much hype and promotion as any other game they've released recently. Either nobody cared, or nobody thought the end product was worth buying.
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