Via Andriasang Inafune gave a talk at a University in Kyoto and Famitsu covered it.  The interesting thing is how Inafune, star of the upcoming Hyperdimension Neptunia sequel, got Capcom to make Lost Planet and Dead Rising.  Capcom had a rule that 70-80% of rleases had to be sequels of existing propoerties and Inafune said it was closer to 100% sequels since getting new IP approved was almost impossible.  But making prototypes came from a separate budget and there was no overriding control on prototypes.  So he used the prototype budget on Lost Planet going, over budget by 400%, at which point he hoped he spent so much money that Capcom was forced to put it out.

You have a point, but most devs from Japan ARE crazy. (Dont get angry at me, I like crazy Japanese devs, or crazy Japanese in general)

To me, it was more like a risk than something crazy, he did that so he could get the games released. And overall, it paid off(according to the article).

Remember, this was around the same time new IPs (like Okami and God Hand) made by the company's most talented people (Mikami, Kamiya, Inaba & Co.) flopped, leading to Clover Studio being shut down and said talented people leaving the company. I'm not surprised they wanted to play it safe when not even the people who created Resident Evil and Devil May Cry could make financially successful new IPs.

"Also, while I do like Lost Planet it does not make up for the other awful projects that resulted from his "my country sucks at making games" mentality. Inafune did more harm than he did good."

I'm not a huge fan of Japanese crazy but I do have a thing for his particular brand.