Although somewhat outdated, the Tokyo Shimbun newspaper published an article on the 14th reporting a series of anime production companies going bankrupt or going out of business.

Japanese anime is highly regarded worldwide, highly sought after, and the anime production market continues to expand. While it may appear to be a promising industry from the outside, in reality, many anime production companies are experiencing unprofitable overcrowding.

One reason is a shortage of personnel, which extends production times and drives up costs. In other cases, rising labor costs have significantly increased costs, resulting in losses. In recent years, there has been a trend toward outsourcing some production overseas, but the weak yen has kept outsourcing costs high, putting pressure on management. Since many anime production companies are originally small and medium-sized enterprises, their financial resources are limited.

Anime production is not something that just anyone can do. It requires skill and talent, and one must have a true love for anime to continue. Developing talent is no easy task, and the talent shortage has become a near-perpetual challenge. Moreover, the nature of the work necessitates long working hours, which tends to scare young people who prioritize work-life balance.
Meanwhile, today, a wide variety of media technologies, including AI, are emerging. Making good use of these cutting-edge technologies could dramatically improve anime production. If hits could be produced efficiently with a small number of staff, profit margins would improve and companies could escape the unprofitable rush.
What worries me is that AI could undermine Japan’s dominance in anime production. To put it bluntly, if AI is used effectively, anyone could create anime. If AI is taught the unique nuances of the Japanese, anyone, whether American, Chinese, or anyone else, could create Japanese-style anime. This could lead to a loss of the rarity value of Japanese anime, and the spread of AI could actually accelerate the bankruptcies and closures of domestic anime production companies. It’s a tricky issue. (Kei Kitajima)