Anime costs dearly: WIT Studio and Production I.G report losses

0


Making top-notch animation comes at a sky-high price, and the anime industry is feeling it directly in its own pockets. IG Port, the giant parent corporation that is home to heavyweights like Production I.G and WIT Studio, has just released its financial results for the fiscal year ending in May 2026, leaving the community quite worried. Even as overall sales of its animation division rose, the company reported a drastic and painful drop in operating profits, confirming that the animation business is going through a severe crisis due to production costs.




While the company generated more than eight billion yen in sales, the red numbers were crushing. The video division posted an operating loss of more than 1 billion yen, dragging the corporate's overall profit to a brutal 46.3 percent year-on-year drop. The direct culprit? The endless delays and excessive price gouging in absolutely every creative area. Executives noted that paying fair wages, covering expensive scenes created with CGI graphics and overrelying on other outsourced animation studios has raised budgets so much that several of their projects plan to spend far more money than they will actually raise, forcing them to set aside emergency funds to mitigate the tremendous blow.




Fortunately, the panorama was not a total catastrophe thanks to other divisions. The areas dedicated to copyright management and publishing managed to keep the ship afloat, cushioning part of the financial collapse. The sale of official merchandise also reported positive numbers, although unfortunately it did not manage to achieve the enormous internal goals that the board had set. However, the forecast for the following months is still quite depressing, as they project that their profits will continue to sink by almost twenty-five percent extra by May 2027, demonstrating that the very high global demand for Japanese series is useless if companies fail to control the hemorrhage of money in their calendars.


Seeing that not even elite studios can easily sustain the immense economic burden required to produce episodes with cinema quality

You may like these posts

No comments