Studio KAI Loses Millions Even with Popular Anime

The Japanese studio Studio KAI suffered a major loss — about 565 million yen (approximately 3.54 million USD) — in the fiscal year of 2025. This financial deficit accumulated over time and ultimately led the company into insolvency, meaning it no longer has enough resources to cover its debts.

Founded in 2019, Studio KAI gained recognition for its work on popular anime such as the latest seasons of Umamusume: Pretty Derby and the adaptation of Sentenced to Be a Hero. With a team of over 130 employees, the studio stood out for prioritizing in-house production and hiring animators full-time, an approach considered more stable compared to the traditional outsourcing model.

Despite this differentiated structure and the recognized quality of its productions, Studio KAI is facing insolvency within a broader crisis in the anime industry. In recent years, the number of studios declaring bankruptcy or shutting down has been increasing, making 2025 the third consecutive year of growth in such cases.

Experts point out that high production costs, tight deadlines, and low compensation compared to the effort required are key factors behind this crisis. Even with the global growth in anime consumption, many studios still struggle to turn popularity into sustainable profit.

via Gamebiz