Making anime today is practically a risky venture, and for some studios, the economic situation is becoming unsustainable. To fans’ concern, recent financial reports from producer ABC Animation and the renowned studio Silver Link (both part of Asahi Broadcasting Group Holdings) have just confirmed that the companies recorded significant operating losses during the first quarter of the current fiscal year, covering April to June 2026.

Breaking down the numbers, Silver Link‘s outlook is the most alarming within the anime industry. Despite working on the production of the second season of Mission: Yozakura Family, the studio reported sales of 301 million yen, representing a steep drop of 28.8 percent compared to the previous year. Although its operating loss of 109 million yen was slightly better than its past financial disaster, the company has accumulated three consecutive years of operating in the red and carries a heavy debt burden. Meanwhile, ABC Animation managed to increase its sales to 434 million yen but still ended the quarter losing a significant 70 million yen.

For those who have followed this legendary studio founded in 2007, which gave us unforgettable gems like Non Non Biyori, Watamote, and Strike the Blood, seeing it in this situation is quite sad. This trend of generating more sales but still losing money reflects a huge problem suffocating mid-sized studios. Production schedules have become excessively long, and the shortage of experienced animators continues to drive up overall costs to finish any series, trapping companies in a cycle where taking on more projects doesn’t magically translate into higher profits.

With inflation and strict production schedules continuing to financially strangle beloved studios like Silver Link, do you think the Japanese animation bubble is about to burst if these companies’ working and financial conditions don’t radically improve?