I've collected some official statements made by Capcom. All statements are related to Biohazard 1.5 (Resident Evil 1.5).
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Interview with Shinji Mikami in the magazine "Maniac":
Maniac (Magazin): "Mr. Mikami, will the so called Resident Evil 1.5 ever be released ?"
Shinji Mikami (Capcom): "(laughes), No."
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A dialogue between a Bioflames member and a moderator of Capcom EU about 1.5 (Partial):
Clayonite (Capcom EU Mod):
... Resident Evil 1.5 surely is one of the greatest phenomenons, but I know that there are only WIP discs (Work In Progress). This is a common thing in the gaming industry, that games are nearly completed and then get cancelled for several reasons. Sometimes it's the publisher who thinks, that the game won't sell as good as wanted. In this case it was Capcoms top management and Shinji Mikami himself who weren't convinced, that RE1.5 would bring the desired success...
Resident Evil 1.5 is what Dino Crisis 2 gives us today - Action, the focus of the game is action and speed in game progress. Capcom tried to insert these elements into RE, but it didn't bring the wanted success for it's time. In other words: Resident Evil 1.5 was ahead of its time, as the following titles like Resident Evil 4 prove.
...Ok, back to your original question. I'm sure, that Capcom will never release this game. Maybe they release footage of 1.5 on some collector discs, but never as a full game. That is highly unlikely, I'm sorry!...
...yeah, if it's about 1.5, I can say that Capcom and Shinji Mikami weren't happy with the game, because the difference between it and Resident Evil 1 was to big. They wanted a better connection to the story. In other words, Resident Evil 1.5 slowed the story down and didn't bring the story into the right direction...
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NOTE: More quotes & Statements about RE1.5 will follow, I currently just don't have the time to write all of them down...
Translation by: Reon Sukotto Kenedi