Clover Studio Co., Ltd. was an internal development studio of Capcom, founded in July 2004. It was set up as a wholly owned subsidiary to develop new IP and original franchises. Their first successful venture was the Viewtiful Joe series, followed by the highly original Ōkami and God Hand, both in 2006.
On 11th October 2006, Capcom announced to close the studio by March 2007, due to an internal restructuring process with less, but larger development units. Although management was pleased with the games' creativity, Capcom games from other divisions, such as Lost Planet and Dead Rising, sold much better. The franchises are still owned by Capcom.
The company name of Clover Studio comes from the word "three leaf" comprised of the japanese phonetics "mi" and "ba". These phonetics are derived from the family names of CEO Atsushi Inaba (Ba) and his mentor, famed developer Shinji Mikami (Mi).
However after all that meaning, the Clover Studio logo is actually a four leafed clover. Atsushi Inaba says that the four-leaf creation simply looked better when it came to designing a logo.