Anime Studios in Crisis as Closures Surge in Japan

Anime Studios Face Third Consecutive Year of Financial Strain

Japan’s renowned animation industry is facing a serious downturn as the number of studio bankruptcies and closures continues to climb for the third consecutive year. According to recent industry findings, eight anime production companies have already closed this year two declaring bankruptcy and six either suspending operations or dissolving entirely. This brings the trend dangerously close to the record set in 2018 when sixteen studios exited the industry.

Larger Studios Are Now Feeling the Impact

Unlike previous years, the downturn is not confined to small-scale subcontractors or freelancers. The report highlights that a significant portion of these closures involve “prime” and “gross contractor” studios companies capable of handling full-scale production internally. Over the last five years, nearly half of all studio shutdowns came from these higher-level entities, revealing a deeper structural challenge within the animation ecosystem.

A “Profitless Boom” in the Anime Market

The ongoing crisis is largely attributed to a severe shortage of skilled animators and staff, creating what analysts call a “profitless boom.” Demand for anime content is stronger than ever, with orders for new shows exceeding production capacity. Studios are overworked, deadlines stretch longer, and labor costs rise. Compounding the problem, the depreciation of the yen has made overseas outsourcing more expensive, further eroding profit margins.

Global Implications for Anime Fans

This issue has far-reaching consequences beyond Japan. With Southeast Asia and other global regions continuing to enjoy a surge in anime streaming and licensing, the weakening production base threatens to disrupt schedules, quality, and even the availability of new series. While viewers may not notice immediate delays, the long-term stability of the anime production pipeline is becoming increasingly uncertain.

Calls for Reform and Industry Support

Industry groups and government agencies in Japan are attempting to address the issue by improving working conditions and investing in animator training programs. However, experts warn that without deeper financial and operational reform, many studios may continue to struggle. The industry’s future depends on balancing the skyrocketing demand for content with sustainable working environments and financial structures.

THIS IS our take
Japan’s anime machine might look unstoppable from the outside, but cracks are showing under the surface. As talent burns out and studios close, fans across Southeast Asia should remember that every frame of their favorite show comes at a human cost. The industry’s creative heart needs support before the lights fade out.

origin: automaton