Disappointing to hear, I must admit. People as talented as him are sorely needed. But as long as he's happy doing what he does, then that's all that really matters.
Was CV outsourced from the beginning or did it originate as a fully internal project?
It's pretty unfair to judge Katoh's skill as a game designer based on CODE:Veronica.
Katoh and Kaori Nishio were the only CAPCOM employees involved in that project (not counting the producers/supervisors who weren't developers). Actual design and development was handled by Nextech and Tose.
Was CV outsourced from the beginning or did it originate as a fully internal project?