TOKYO, Nov 19 (News On Japan) - The animated film ‘Demon Slayer: Infinity Castle Part 1 – Akaza Returns’ has become the first Japanese production in history to surpass 100 billion yen in global box office revenue, while Bandai Namco Holdings has revised up its profit outlook on the back of strong performances from the ‘Mobile Suit Gundam’ series. With 46 years having passed since the first Gundam aired, the question now is why the franchise continues to grow.
Inviting anime journalist Naofumi Tsudo as a guest, the program explores how Japanese animation can advance further on the global stage.
Sales data show that revenues from the Gundam franchise have continued to rise since the original series began broadcasting in 1979, with momentum increasing rather than fading. Gundam has sustained its appeal across generations by releasing new titles and an expanding range of spin-offs, each crafted to resonate with different audiences. Tsudo notes that Gundam now functions less as a single series and more as a genre in itself, offering a flexible framework that supports varied storylines and visual styles while retaining the brand’s core identity.
Another major strength is the organizational structure behind the franchise. Bandai Namco Group houses everything from animation studios and game development to toy manufacturing and live events within a single corporate ecosystem. While most anime rely on production committees composed of multiple companies, Gundam’s development, marketing, and merchandising can be managed end-to-end within the group, enabling smoother planning and execution. Overseas, the franchise shows differing patterns, with particular titles resonating in Europe and North America, while overall brand strength is exceptionally high in East and Southeast Asia.
Across the broader anime industry, Japanese titles are achieving remarkable global success. The latest Demon Slayer film surpassed 100 billion yen worldwide, and ‘Chainsaw Man: Reze Arc’ opened at No. 1 in the United States in its first three days. Although Japanese anime has been popular abroad since the 1970s and 1980s, Tsudo argues that the past four to five years have marked a clear shift to a higher competitive tier. What was once viewed as niche or children’s content has grown into an international category capable of rivaling Hollywood blockbusters.
Market data also reflect this shift. Overseas revenues have expanded more rapidly than domestic sales, and in the global streaming market, Japanese animation is the only category still showing steady growth. The spread of streaming services has been crucial, allowing viewers worldwide to access a vast catalog unconstrained by traditional broadcast limits. Platforms such as Sony-owned Crunchyroll and Netflix have played major roles, and Sony’s full-scale commitment to anime has had a particularly significant impact.
Netflix viewing rankings further reveal that Japanese anime is especially strong in Latin America, Southeast Asia, and the Middle East, regions where the number of weeks Japanese titles appeared in the top ten far exceeds that in other markets. While competition in North America remains intense due to the abundance of domestic U.S. content, emerging markets tend to evaluate Japanese and American titles on the same footing, often choosing Japanese works for their distinctive appeal.
At the same time, overseas competitors are accelerating. In China, the recently released animated feature ‘Nezha’ surpassed 300 billion yen in box office revenue, becoming the highest-grossing animated film in global history. Meanwhile, the CG action title ‘K-Pop Girls: Demon Hunters,’ produced by a Sony Pictures subsidiary and directed by a Korean-Canadian filmmaker, has exceeded 300 million views on Netflix and dominated U.S. Halloween costume rankings, highlighting its widespread popularity.
Asked whether these foreign productions pose a threat, Tsudo says they are both competitors and potential collaborators. China’s CG animation has rapidly reached world-class quality thanks to substantial budgets, but Japanese animation continues to maintain dominance in hand-drawn 2D works, a format that retains strong global appeal. Because CG and 2D often cater to different audience expectations, the two markets do not fully overlap, and Tsudo expects Japanese 2D anime to maintain its unique position. Collaboration between Japan’s 2D strengths and overseas CG capabilities, he adds, could open new opportunities rather than create zero-sum competition.
Source: テレ東BIZ
