TOKYO REPORT: Japan to Boost Aid for Games, Anime as New Pillar of Growth

Tokyo, Jan. 13 (Jiji Press)–The Japanese government will step up support for the overseas expansion of content industries such as games and anime, while also investing further in related human resources development. Overseas sales of Japanese content reached around 5.8 trillion yen in 2023, surpassing Japan’s semiconductor exports. In 2025, global box-office revenue for the anime movie “Demon Slayer: Kimetsu no Yaiba the Movie: Infinity Castle–Part 1: Akaza Returns” topped 100 billion yen, marking the first time a Japanese movie has achieved this milestone. Positioning the content industry as a new pillar of economic growth, the government has set a target of boosting annual overseas sales to 20 trillion yen by 2033. Currently, the Japanese government allocates 25.3 billion yen to support the content industry. By contrast, public-private collaboration is far more advanced overseas. In 2023, the South Korean government budgeted funds worth about 76 billion yen, and the U.S. government provided support valued at roughly 600 billion yen. California, home to Hollywood, also offers generous subsidies and tax incentives. Worried about the gap, the ruling Liberal Democratic Party has adopted an emergency resolution calling for a roughly fourfold increase in Japan’s related budget. The resolution stated that funding “needs to be swiftly boosted to more than 100 billion yen, on par with support in other countries.” The administration of Prime Minister Sanae Takaichi has designated the content industry as a key target for intensive investment and plans to roll out large-scale, multiyear support beginning with 35 billion yen earmarked in the supplementary budget for fiscal 2025. The measures will focus on strengthening distribution networks to deliver Japan-originated content, such as manga, anime and music, to global audiences in a more integrated way. In particular, the government aims to support efforts to combat pirated versions of original manga used as source material for anime and dramas, as well as initiatives to raise the international profile of Japanese content. Priority will be given to the use of artificial intelligence-driven translation tools and the training of specialized translation professionals, with the goal of increasing the earning power of domestic publishers and production companies through the worldwide distribution of manga works. Officials in fields beyond manga are also seeking support for human resources. At a meeting of a government-appointed panel of experts attended by movie director Hideaki Anno, creator of the anime “Neon Genesis Evangelion,” participants highlighted a shortage of creators and translators working on the front lines of content production. After the meeting, Haruhiro Tsujimoto, president of game software developer Capcom Co., explained that adapting Japanese works to the language and culture of each country–so-called localization–requires substantial costs and manpower. He added that “government support is indispensable.” The content industry’s call for support in developing human resources reflects a growing labor shortage at production sites amid rising global demand. The anime sector in particular is struggling with a chronic lack of staff, driven by excessively long working hours and low wages, and the number of titles produced each year is on the decline. Kimi Onoda, minister in charge of intellectual property strategy, emphasized that “improving working conditions is essential.” To ensure that creators can work under appropriate contracts, the government is considering the creation of a third-party organization by fiscal 2028 to administer a certification system for works that meet standards such as providing adequate working environments. The Japan Fair Trade Commission is also preparing guidelines that will spell out its position under the antimonopoly law on issues including how subcontracting orders are placed. Content businesses are also in a difficult position. Unable to pass rising costs on to customers, a number of anime production companies have gone bankrupt. An industry insider noted that “subsidies are not reaching the on-site workplaces that need them,” particularly subcontractors. To sustain the industry, appropriate investment and financial support are needed for production companies that lack a stable business base. END [Copyright The Jiji Press, Ltd.]