Yes. Money. That is what they would make if they made that game. Money.
From you perhaps, but likely not enough other people. Lack of player interest is a better answer perhaps. Which will lead to a lack of money.
Advertising is also a possible factor. Capcom, unfortunately, has not done much advertising lately (as in, starting somewhere around 2004-2006) for anything besides its perennial cash cows, Street Fighter and Resident Evil in particular. Even with strong word of mouth for certain titles (see: anything made by Clover or the various underrated fighters from the 90s), Capcom most likely is not willing to bank on it (heavily).
In response to the global economic turndown, they will lay off people just like every other company. If the money the company spends on the project plus marketing exceeds the amount of profit gained from sales plus merchandise, then that person is a liability and is not worth keeping. Or so the logic goes. In other words, executives are feeling pretty risk-averse right now, and it currently takes only one project that doesn't turn a profit to fall victim to You Have Outlived Your Usefulness. This is actually quite the trend right now in media companies, particularly video gaming: Bizarre Studios was dissolved and all its employees laid off after blur failed to be a hit, and the same nearly happened to Junction Point when Epic Mickey turned out not to be the revolution Disney wanted. (In fact, Disney Interactive is no longer even doing retail games.) And with movies, you may remember Peter Jackson and his King Kong movie—it barely broke even, and despite Jackson's reputation for spectacular filmmaking, he is now without any work. I can understand Keiji Inafune feeling frustrated, but I don't think he's going to find better success in America. Executives here are fearful everywhere because the media in general is a high-risk, low-reward business.
The split was years before the bulk of the downturn.