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Insolvent Anime Studio Behind Hit Series Faces Crisis
13 Apr
Summary
- Anime studio Studio Kai faces insolvency after seven years of financial losses.
- Despite losses, the studio produced hit anime like Sentenced to Be a Hero.
- Fans believe parent company Krafton will prevent Studio Kai's collapse.
Studio Kai, known for popular anime such as Sentenced to Be a Hero and Umamusume: Pretty Derby, is currently facing a critical financial situation. The animation studio has reported net losses for seven consecutive years, with its latest fiscal year ending with a deficit of approximately 248 million yen ($1.5 million). This brings their cumulative net losses to around 565 million yen ($3.5 million), placing Studio Kai in a state of insolvency as of April 13, 2026.
Despite these dire financial reports, fans are not expressing significant concern. Many believe that ADK Holdings, the parent company of Studio Kai and a subsidiary of Krafton, will intervene to prevent its collapse. This optimism stems from the fact that Studio Kai has produced numerous successful and best-selling anime series, including multiple seasons of Umamusume: Pretty Derby and Skeleton Knight in Another World, as well as Sentenced to Be a Hero, released earlier this year.
Commenters speculate that this financial reporting might be a strategy to avoid taxes, a practice sometimes referred to as 'Hollywood accounting.' It remains unverified, but it is difficult to reconcile the studio's reported insolvency with its consistent output of popular and commercially successful anime. ADK Holdings was acquired by Krafton for 75 billion yen ($517 million) in 2025, suggesting sufficient financial backing to potentially support Studio Kai if necessary.
