Gonzo to Reduce Annual Anime Output from 8 to 4

[Damius]

From ANN:

Gonzo to Reduce Annual Anime Output from 8 to 4


Announced 2009 titles include Druaga sequel, Arad Senki, Shangri-La (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10246), Alive (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10077)
GDH (http://www.animenewsnetwork.com/encyclopedia/company.php?id=1279), the corporate parent of the Gonzo (http://www.animenewsnetwork.com/encyclopedia/company.php?id=395) anime company, has announced (http://www.gdh.co.jp/ir/press/pdf/081110_1.pdf) that it will be restructuring, and therefore reducing its annual output of anime from about eight projects to four in the next fiscal year. The decision was made during the board of directors' meeting that was held on Monday. The company currently produces anime through its four internal studios and outsourcing to other companies. It plans to combine its internal studios under one division and "carefully" winnow its output from eight to four titles.
GDH did not specify which titles will still go forward in production. Gonzo had (http://www.animenewsnetwork.com/news/2008-06-20/the-tower-of-druaga-the-sword-of-uruk-anime-in-2009) already announced (http://www.animenewsnetwork.com/news/2008-08-24/gonzo-to-animate-korean-mmorpg-dungeon-and-fighter) that it would (http://www.animenewsnetwork.com/news/2008-09-08/gonzo-to-animate-shangri-la-novel-for-tv) be working (http://www.animenewsnetwork.com/news/2008-06-16/kawashima-alive-manga-gets-tv-anime) on The Tower of DRUAGA -the Sword of URUK- (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10274), Slap Up Party -Arad Senki- (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10232), Shangri-La (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10246), and Alive - Saishū Shinka teki Shōnen (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=10077) in 2009. It is also producing the Afro Samurai (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=5275): Resurrection television movie, but that is scheduled (http://www.animenewsnetwork.com/news/2008-07-24/lucy-liu-mark-hamill-join-afro-samurai-resurrection) to run in the United States next January, before the next fiscal year. Earlier in 2008, Gonzo produced Rosario + Vampire (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=8517), S.A (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=8769), Blassreiter (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=9069), The Tower of Druaga: the Aegis of Uruk (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=8746), and Strike Witches (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=9139). It is also producing (http://www.animenewsnetwork.com/news/2007-12-12/iron-linebarrel-robot-manga-to-be-animated-in-2008) the ongoing (http://www.animenewsnetwork.com/news/2008-07-01/rosario+vampire-capu2-anime-promo-movie-streamed) television series Linebarrels of Iron (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=9089) and Rosario + Vampire Capu2 (http://www.animenewsnetwork.com/encyclopedia/anime.php?id=9727).
Besides its reduction in anime output, GDH plans to reduce its representative director's compensation by half, its board of directors' head count by two (or 30%), and its executive and managerial staff's head count by eight (or 10 to 20%). By consolidating its operations, it plans to save 40 to 120 million yen (about US$400,000 to US$1.2 million) in rent, 40 to 50 million yen (US$400,000 to US$500,000) in system costs, and 50 to 100 million yen (US$500,000 to US$1 million) in possible managerial expenses.
The Japanese investment company Iwakaze Capital had taken over (http://www.animenewsnetwork.com/news/2008-09-17/iwakaze-capital-takeover-of-gonzo-parent-proceeds) GDH by acquiring more shares in GDH earlier this fall. At the time, CEO Shinichiro Ishikawa (http://www.animenewsnetwork.com/encyclopedia/people.php?id=1622), director/chief financial officer Fumiaki Goto, and executive vice president/chief operating officer Yasushi Uchida (http://www.animenewsnetwork.com/encyclopedia/people.php?id=22137) left the company.
Source: Moon Phase Comments (http://d.hatena.ne.jp/moonphase/20081110)

[something]

Sounds about right, they were doing too much stuff that was just too mediocre. And for the most part, their shows just don't appeal to their own home market, which isn't a very sustainable approach. If they're smart (and like money) they'll prioritize Strike Witches 2, and then use their reduced output schedule to focus a little more on the quality of their series. Maybe use this opportunity to ween themselves off godawful 3dcg. Focus on making shows that Japan wants to buy (also more likely to be shows *I* want to buy).

I don't really see this as a bad thing at all, because I *don't* necessarily hate Gonzo, and would like to see more of their output be quality... well, by which I mean stuff I want to watch =P

[Suwako Moriya]

It doesn't really matter to me how many titles a company works on in a given year so long as they work on them properly. My main interest right now is the second season of Druaga anyway.

[Damius]

I suppose only time will tell, but if this mean more quality instead of quantity I see this as a good news. Let's see.

[Suwako Moriya]

I suppose only time will tell, but if this mean more quality instead of quantity I see this as a good news. Let's see.

It depends partially on the reasons for why there is a decrease in quantity and what they decide to focus on. It might be less a case of "Let's buy one high quality $50 item instead of five low quality $10 ones" and more a case of "Looks like we can only buy two low quality $10 items instead of the original five we planned to buy".

The focus thing is very important because you have to hope the things they decide to give primary focus to are stuff you want. A reduction in quantity does you no good if they decide to prioritize what you have no interest in over what you might desire.

Still only time will tell. I look at this way. Removing 49 rotten apples from a batch of 50 won't magically make the remaining rotten apple "good". I think that's probably the best way to put it. That being said if they feel they can better handle four series and that trying to do eight at once would backfire on them then it's ultimately for the best. Being realistic in terms of your goals is always a good thing.

[Fencedude]

I'm just shocked at these developments!

(also, screw that stuff, give us 4 cour of Strike Witches)

[Ashyukun]

I'm just shocked at these developments!

(also, screw that stuff, give us 4 cour of Strike Witches)
I dunno, I think making us wait at least one season between cours would still be good to build up the anticipation and make it all the more enjoyable when the next cour finally aired.

[Suwako Moriya]

(also, screw that stuff, give us 4 cour of Strike Witches)

I'm not against the idea of more Strike Witches per se, but I wan to see more of my Coopa first. *Runs*

[Draneor]

I dunno, I think making us wait at least one season between cours would still be good to build up the anticipation and make it all the more enjoyable when the next cour finally aired.

Well, keep in mind that the nature of R2 DVD sales (one DVD a month, ~two to three episodes per DVD, and three month delay before DVDs go on sale) tend to favor at least one off-season. Otherwise, the first DVD of the second cour comes out before the DVDs for the first finish. For one cour shows with seperate seasons, that is.

[Buster Blader 126]

If this means they can possibly make better quality titles as a whole, then I'm all for it. Not that I can notice those "quality" differences, anyways.

Maybe use this opportunity to ween themselves off godawful 3dcg.

XD

Not that I can really tell when it's crap and all, but it's not all that bad at times. Of course, we both have our own opinions, so I'll leave it at that.

[something]

but it's not all that bad at times.
It is when it's Gonzo, at least. Gundam 00 style 3dcg it sure as heck is not.

[Thomas Alan]

I'm fine, Gonzo is the world's leader in good-looking crap. Hopefully, they're just consolidating and lightening the load on their most talented.

If not, it just means 4 fewer disappointing shows per year.

[Splitter]

Good: GONZO reducing. This'll most likely lead to better-tuned final products. I mean, look at KyoAni, the number of projects they do a year can be counted on one hand, and they're still heavily respected.

Bad: Lack of Strike Witches S2. It's your highest-selling product in years and you're focusing on Druaga?! PRIORITIZE!!!

[Lego]

Aside from the easy cheap shot on Gonzo, I hope the move helps them out. If having fewer projects helps them become better funded, it sounds like a win win.

[Busaiku]

It's your highest-selling product in years

Minus Afro Samurai.

[something]

It's your highest-selling product in years Minus Afro Samurai.
In Japan, we mean. It's their first to break 10k/vol since Vandread in... 2000? And it's sales in Japan that Gonzo needs if they want to stay alive. Anime is, after all, still a product meant for Japanese viewers first and foremost.

[rg4619]

Bad: Lack of Strike Witches S2. It's your highest-selling product in years and you're focusing on Druaga?! PRIORITIZE!!!

I'm sure they'll get to Strike Witches eventually. Druaga was planned and announced first, so it's probably already in progress.

[Suwako Moriya]

I'm sure they'll get to Strike Witches eventually. Druaga was planned and announced first, so it's probably already in progress.

Thus it's only fair that we get Druaga S2 first. A two cour gap between the first and second season is long enough in my view.

[ArcticMech]

I'm sure they'll get to Strike Witches eventually. Druaga was planned and announced first, so it's probably already in progress.

Thus it's only fair that we get Druaga S2 first. A two cour gap between the first and second season is long enough in my view.

Yep, I wouldn't worry about Strike Witches. Money talks and a sequel is all but written in stone. Bring on Druaga (minus the CG monsters if at all possible).

[Shiroi Hane]

Gonzo more than amy other company panders to the overseas markets however, what with Afrosamurai, Witchblade, that GI Joe thing (did they ever actually make that?), Linkin Park music videos etc.

[something]

Gonzo more than amy other company panders to the overseas markets however, what with Afrosamurai, Witchblade, that GI Joe thing (did they ever actually make that?), Linkin Park music videos etc.
And that's probably a big part of why they're in trouble.

[Thomas Alan]

Gonzo more than amy other company panders to the overseas markets however, what with Afrosamurai, Witchblade, that GI Joe thing (did they ever actually make that?), Linkin Park music videos etc.
And that's probably a big part of why they're in trouble.

I was under the impression that Afrosamurai was a cashcow.

[Draneor]

I was under the impression that Afrosamurai was a cashcow.

I thought I read somewhere that Gonzo was now going to focus on casual anime (http://www.sankakucomplex.com/2008/11/11/gonzo-guts-anime-production-over-losses-output-to-halve/) (NSWF).

[rg4619]

AFAIK, American co-productions like Afro Samurai and Witchblade did very well for Gonzo. Heavily otaku-oriented output has been quite rough, although they managed to land hits with Rosario to Vampire and Strike Witches.

I suspect it's the middle ground (which doesn't sell in Japan anyway) that we'll see much less of. Even shows like Druaga and Blassreiter might become things of the past if they want casual anime instead.

[Prede]

Well I think if anything this is a sign of the economey, and the current anime market. They just can't afford to keep making 8ish anime series a year, that aren't selling. Better to make 4 that will sell decently.

Although others kind of disliked their latest "so called mediocre" stuff, I enjoyed them. None of them were masterpeices, but stuff like Pumpkin Scissors, Red Garden, Welcome to the NHK, are all good series from 2006. Of course I doubt any of them sold too well. Kind of disapointed I won't be able to see as much stuff like that, as I was. I have a feeling that the types of shows they are going to "cut down on" are those types of shows, ones I like. They will keep doing the Afro Samurais and Strike Witches, but not as many Red Gardens and Pumpkin Scissors...But whatever works for them I guess.

[pianocello]

Gonzo better have a quota that at least half their anime have yuri and ecchi. Like Strike Witches, for example......

[Thomas Alan]

I was under the impression that Afrosamurai was a cashcow.

I thought I read somewhere that Gonzo was now going to focus on casual anime (http://www.sankakucomplex.com/2008/11/11/gonzo-guts-anime-production-over-losses-output-to-halve/) (NSWF).

After staring at that for a few minutes I realized I had no idea what "casual" means in regards to anime.

[Leon_Belmont]

They weren't even hitting 4 good ones out of 8 so regularly, I'd say no loss here. But it's the slightly offbeat good ones that will now probably be left in the dust. Still, won't knock em till I see what hits. Who knows? Maybe it'll work out for the better. Maybe all four will be phenomenal.

[Leon_Belmont]

Bad: Lack of Strike Witches S2. It's your highest-selling product in years and you're focusing on Druaga?! PRIORITIZE!!!

Geez S1 was only like 13 or 14 episodes. And actually good. By all means, I'd like 26.

[Westlo]

This sucks, want season 2 of Seto no Hanayame, Seto no Hanayame OVA Fist of Northstar parody > 13 episodes of Strike Witches.

[something]

I was under the impression that Afrosamurai was a cashcow.
That's not the point. The point is they can't live off those shows alone, not as a Japanese company. With the slowdown in our market, relying on R1 sales won't keep them afloat.

[Draneor]

This sucks, want season 2 of Seto no Hanayame, Seto no Hanayame OVA Fist of Northstar parody > 13 episodes of Strike Witches.

Seto no Hanayome was also done by AIC. Plus, as I'm sure you know, it's owned by Square-Enix. There is no reason Gonzo needs to be involved with any sequal, if they choose to make one (sales were slightly above average though).


That's not the point. The point is they can't live off those shows alone, not as a Japanese company. With the slowdown in our market, relying on R1 sales won't keep them afloat.

I suppose it comes down to what they mean by "casual" anime. Do they mean international titles with casual appeal? Casual appeal in Japan (like salaryman anime)? Kids shows? I guess we'll find out starting this winter.

[something]

I suppose it comes down to what they mean by "casual" anime. Do they mean international titles with casual appeal? Casual appeal in Japan (like salaryman anime)? Kids shows? I guess we'll find out starting this winter.
Yeah, "casual" doesn't make a lick of sense in that article. Then again a number of articles I've read there don't.

[Thomas Alan]

I was under the impression that Afrosamurai was a cashcow.
That's not the point. The point is they can't live off those shows alone, not as a Japanese company. With the slowdown in our market, relying on R1 sales won't keep them afloat.

I wasn't suggesting they live off them, but I don't think they're reducing production because of it. I'm sure Gonzo's very happy that they did Witchblade and Afro Samuai and I wouldn't be surprised if they keep looking for American targeted opportunities in their reduced state.

[something]

I wasn't suggesting they live off them, but I don't think they're reducing production because of it. I'm sure Gonzo's very happy that they did Witchblade and Afro Samuai and I wouldn't be surprised if they keep looking for American targeted opportunities in their reduced state.
This seems to be an issue of phrasing... No, I don't think these high selling shows in R1 are a detriment to Gonzo. Anything that sells is good. Those shows aren't "causing" the pullback per se, but rather it's the fact that they're all Gonzo has that seems to sell. And they'll only really sell in R1. And Gonzo makes a lot of shows geared to R1 tastes, but not all of them sell. The Afro Samurais and Witchblades aren't the norm. I'd also speculate that they get a better return per dollar/yen on an R2 disc sale than on an R1, but that one's only a pure guess.

In short, Gonzo needs more like Strike Witches (or whatever) for their R2 customers, regardless of whether or not they also keep pumping out R1-focused successes.

[musouka]

In short, Gonzo needs more like Strike Witches (or whatever) for their R2 customers, regardless of whether or not they also keep pumping out R1-focused successes.

My fear is that anime companies are going to end up similar to the way comic book companies are here, where they become so focused on a niche audience that eventually that niche is all they have. While it's important for Gonzo to keep R1 tastes in mind, I don't think there's anything wrong with trying to broaden your base.

[something]

My fear is that anime companies are going to end up similar to the way comic book companies are here, where they become so focused on a niche audience that eventually that niche is all they have. While it's important for Gonzo to keep R1 tastes in mind, I don't think there's anything wrong with trying to broaden your base.
I'm not sure if you're agreeing or disagreeing with me, but I think you're agreeing, because this is how I feel too. If I read you right. Gonzo needs to keep R1 in mind, as well as broadening their base to R2J tastes (which are also largely my tastes) as well. As for niche tastes, I think a company can cater to the niche in large part and still do fine, as long as they're catering to multiple niches. If Show A is niche, and Show B is another niche, and Show F is yet another, they've got three fan populations covered.

[Draneor]

I'd also speculate that they get a better return per dollar/yen on an R2 disc sale than on an R1, but that one's only a pure guess.

I wonder... Gonzo, as far as I know, doesn't distribute their own DVDs. We know that the DVDs of shows that aren't broadcasted on TV, such as Tentai Senshi Sunred (http://www.amazon.co.jp/%E5%A4%A9%E4%BD%93%E6%88%A6%E5%A3%AB%E3%82%B5%E3%8 3%B3%E3%83%AC%E3%83%83%E3%83%89-%E7%AC%AC1%E5%B7%BB-%E9%AB%98%E6%9C%A8%E4%BF%8A/dp/B001IBSGCY/ref=sr_1_1?ie=UTF8&s=dvd&qid=1226516499&sr=1-1), are significantly cheaper and have higher episode counts. We also know OADs, bundled with manga, are cheaper partly because they by-pass the usual distributors. Really, I don't know. It's quite possible though that a show like Afro Samurai might make Gonzo more money than Strike Witches because it cuts out the middlemen. But then, we don't know how much Gonzo paid to use the pre-existing properties for both works.

[musouka]

I'm not sure if you're agreeing or disagreeing with me, but I think you're agreeing, because this is how I feel too. If I read you right. Gonzo needs to keep R1 in mind, as well as broadening their base to R2J tastes (which are also largely my tastes) as well. As for niche tastes, I think a company can cater to the niche in large part and still do fine, as long as they're catering to multiple niches. If Show A is niche, and Show B is another niche, and Show F is yet another, they've got three fan populations covered.

I was agreeing, but I can see how it came off confusing. Basically, I understand that Gonzo needs to make money, so shows like Strike Witches are a good idea, since that's the current taste of the Japanese market. However, if you only pander to the "otaku you have", you won't grow your market and eventually you'll see diminished returns.