Division 1 is the cool, special ops name for the development team at Capcom responsible for coming up with newgames. According to a financial report spotlighted , however, that's not their focus just at the moment.
Instead, the team is focusing on the potential of virtual reality technology and its applications for gaming. In the report Capcom claims VR gaming is "the hottest market right now."
“We are focusing our energy on challenging the virtual reality game market,” writes Division 1’s Jun Takeuchi. There's not much more information than that, but Takeuchi does talk about the potential benefit of VR tech for horror games. Don't be surprised if Capcom announces a core Resident Evil game as VR compatible, or possibly reveals a spin-off.
According to Takeuchi, Division 1 will continue to study VR options "while simultaneously developing titles for current game consoles."