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Region: Japan
Category: Anime / Business
Date: February 14, 2009

GDH to Reduce Anime Production Department to 1/4

   Gonzo Digimation Holdings (GDH), which has been reconstructing under the investment fund, will be reducing its anime production department to 1/4 of the current size.

According to the Nihon Keizai Shimbun dated February 13, 2009, GDH had announced the reconstruction plan on February 12, that they will be cutting the numbers of contracted anime creation stuffs from 130 to 30 within the next five years. They will also be reducing the number of anime titles as well.

The overall deficit of GDH was 2,594 million yen at the fiscal year ended in March 2007 and 3,752 million yen at the fiscal year ended in March 2008. At the end on the fiscal year of March 2008 GDH had excessive liabilities, and on June 2008, the Tokyo Stock Exchange had placed its stocks on the "grace period due to excessive liabilities (set by the delisting standard of "MOTHERS")". After the grace period, GDH had received a takeover bid from the investment fund Iwakaze Capital, and currently the company is at the middle of its reconstruction.

GDH is forecasted to be at overall deficit for the fiscal year for March 2009 as well; being at deficit for three consecutive fiscal terms. Due to this forecast, GDH will be focusing their business on online game projects, and will be drastically reducing its anime enterprise, which continues to having red ink figures mainly due to poor sales of anime DVDs. Nevertheless, they will aim to have the anime enterprise to move into the black within the next 5 years.

It seems that despite GONZO had released popular titles like "Afro Samurai", "Rosario to Vampire", "Linebarrels of Iron", "BLASSREITER", "The Tower of Druaga" and more, the fact that they are forced to have their business contraction signifies the "anime bubble" that made quite a big deal within Japan, had settled down and now facing slumber.

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