{"id":69919,"date":"2026-07-23T01:00:00","date_gmt":"2026-07-22T16:00:00","guid":{"rendered":"https:\/\/automaton-media.com\/en\/?p=69919"},"modified":"2026-07-22T17:49:42","modified_gmt":"2026-07-22T08:49:42","slug":"production-i-g-and-wit-studio-parent-company-sees-widening-yearly-deficit-in-anime-production-business-amidst-delays-and-ballooning-costs","status":"publish","type":"post","link":"https:\/\/automaton-media.com\/en\/news\/production-i-g-and-wit-studio-parent-company-sees-widening-yearly-deficit-in-anime-production-business-amidst-delays-and-ballooning-costs\/","title":{"rendered":"Production I.G and Wit Studio parent company sees widening yearly deficit in anime\u00a0production business\u00a0amidst delays and ballooning costs\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>IG Port<\/strong>, the parent company of&nbsp;anime studios Production I.G and Wit Studio, recently announced its financial results for the fiscal year&nbsp;ended May 2026. As reported by&nbsp;<a href=\"https:\/\/gamebiz.jp\/news\/429462\" target=\"_blank\" rel=\"noreferrer noopener\">GameBiz<\/a>,&nbsp;the&nbsp;company saw declining&nbsp;revenue and&nbsp;profit margins&nbsp;overall, with operating profit&nbsp;down by&nbsp;46.3%&nbsp;year-on-year,&nbsp;and&nbsp;nearly&nbsp;57%&nbsp;lower than&nbsp;IG Port had&nbsp;originally&nbsp;forecasted.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In its video (animation) production business, the company actually saw revenue increase by 10.7% year-on-year, but\u00a0it appears this\u00a0did not translate into profits, with the\u00a0segment\u00a0seeing a widening\u00a0operating\u00a0loss of approximately $8.22 million USD.\u00a0Some of the titles\u00a0it worked on include\u00a0Devil&#8217;s Crest,\u00a0Eren the\u00a0Southpaw,\u00a0Agents of the Four Seasons, HAIKYU!! VS the Little Giant, and The One Piece.\u00a0\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to IG Port, one major issue\u00a0were\u00a0delays in production\u00a0schedules.\u00a0This was paired with rising production costs throughout the anime industry,\u00a0with the company specifically citing rising expenses related to personnel, CG production, and outsourcing.\u00a0\u00a0Of note, another factor behind\u00a0the weak performance was IG Port having to record &#8220;provisions for anticipated losses on orders,&#8221; which\u00a0likely means\u00a0that for some of its ongoing projects, the company\u00a0determined\u00a0that production costs would run higher than associated earnings.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1547\" height=\"758\" sizes=\"auto, (max-width: 1547px) 100vw, 1547px\" src=\"https:\/\/automaton-media.com\/en\/wp-content\/uploads\/2026\/07\/20260722-69919-header-1.jpg\" alt=\"Eren the\u00a0Southpaw\" class=\"wp-image-69924\" srcset=\"https:\/\/automaton-media.com\/en\/wp-content\/uploads\/2026\/07\/20260722-69919-header-1.jpg 1547w, https:\/\/automaton-media.com\/en\/wp-content\/uploads\/2026\/07\/20260722-69919-header-1-380x186.jpg 380w, https:\/\/automaton-media.com\/en\/wp-content\/uploads\/2026\/07\/20260722-69919-header-1-768x376.jpg 768w, https:\/\/automaton-media.com\/en\/wp-content\/uploads\/2026\/07\/20260722-69919-header-1-1536x753.jpg 1536w\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Although other businesses within IG Port, like publishing and licensing, performed&nbsp;strongly&nbsp;and even exceeded&nbsp;expectations, the company expects operating profit to decline a further 24.3% over the next fiscal year.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related:&nbsp;<\/strong><a href=\"https:\/\/automaton-media.com\/en\/news\/60-of-the-companies-actually-producing-anime-saw-declining-profit-or-losses-in-2024-despite-industry-revenue-being-at-an-all-time-high\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Anime industry stuck in &#8220;profitless boom&#8221; as 60% of the companies actually producing anime see declining profit or losses<\/strong><\/a><strong><\/strong>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/automaton-media.com\/en\/news\/anime-creators-received-0-0-of-japanese-governments-entertainment-industry-subsidies-in-2024-official-documents-show\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Anime creators received \u201c0.0%\u201d of Japanese government\u2019s entertainment industry subsidies\u00a0in 2024, official documents show\u00a0<\/strong><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IG Port missed its annual operating profit forecast by nearly 57%.<\/p>\n","protected":false},"author":55,"featured_media":69923,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_gspb_post_css":"","autoblue_enabled":true,"autoblue_custom_message":"","autoblue_shares":[{"did":"did:plc:uzrrhkfyjrfdsynj2voztcf2","date":"2026-07-22T16:00:12+00:00","uri":"at:\/\/did:plc:uzrrhkfyjrfdsynj2voztcf2\/app.bsky.feed.post\/3mraoy26ax225","response":"{\"uri\":\"at:\/\/did:plc:uzrrhkfyjrfdsynj2voztcf2\/app.bsky.feed.post\/3mraoy26ax225\",\"cid\":\"bafyreif3yp5livunym65oznmfxdou2vfqs3txdhqv5pkg54mvouo4xndje\",\"commit\":{\"cid\":\"bafyreif4s6of344sj5xbppefmzsypgquzzi6qtclrcttpstrw2auyoh3f4\",\"rev\":\"3mraoy26eu225\"},\"validationStatus\":\"valid\"}"}],"autoblue_post_url":"","autoblue_publish_document":false,"footnotes":""},"categories":[3,65],"tags":[73,17],"class_list":["post-69919","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-nongaming-news","tag-anime","tag-japan-related-news"],"blocksy_meta":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - 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