Japan to Boost Aid for Video Games and Anime as New Pillar of Growth

Why It Matters

The infusion of funds positions Japan’s anime and gaming sector as a new pillar of economic growth, helping it capture a larger share of the global entertainment market while mitigating talent shortages and piracy risks.

Key Takeaways

• Overseas sales hit ¥5.8 trillion in 2023.
• Target: ¥20 trillion overseas sales by 2033.
• Budget to rise from ¥25.3 bn to over ¥100 bn.
• AI translation and training to boost global distribution.
• Labor shortage threatens anime and game production.

Pulse Analysis

Japan’s cultural exports have become a strategic economic engine, with 2023 overseas sales of video games, anime and manga topping ¥5.8 trillion—already outpacing the nation’s semiconductor shipments. By contrast, South Korea and the United States devote roughly ¥76 billion and ¥600 billion respectively to similar creative sectors, highlighting a stark funding gap. The new policy frames the content industry as a fourth pillar of growth, aiming to triple export revenues to ¥20 trillion within a decade and cement Japan’s position in the global entertainment hierarchy.

The government’s multi‑year plan earmarks an initial ¥35 billion in the 2025 supplementary budget, with a longer‑term target of exceeding ¥100 billion. Core initiatives include AI‑powered translation tools, specialized training for translators and localizers, and subsidies to combat piracy of manga source material. A proposed third‑party certification body will enforce fair labor standards, addressing the chronic understaffing and excessive overtime that have forced several anime studios into bankruptcy. By strengthening distribution networks and offering tax incentives, the strategy seeks to make Japanese IP more accessible and profitable abroad.

For investors and industry players, the policy signals a more predictable funding environment and a push toward professionalizing the talent pipeline. Enhanced subsidies for localization reduce entry barriers for smaller studios, while anti‑piracy measures protect revenue streams. If executed effectively, Japan could see a surge in globally licensed titles, higher royalty returns for creators, and a revitalized domestic production ecosystem—benefiting everything from indie game developers to major anime studios.

Japan to boost aid for video games and anime as new pillar of growth

Feb 11 2026

The government will step up support for the overseas expansion of content industries such as video games and anime, while also investing more in related human‑resources development.

Overseas sales of Japanese content reached around ¥5.8 trillion ($37.6 billion) in 2023, surpassing Japan's semiconductor exports. In 2025, global box‑office revenue for the anime movie “Demon Slayer: Kimetsu no Yaiba the Movie: Infinity Castle — Part 1: Akaza Returns” topped ¥100 billion, marking the first time a Japanese movie has achieved this milestone.

Positioning the content industry as a new pillar of economic growth, the government has set a target of boosting annual overseas sales to ¥20 trillion by 2033.

The government currently allocates ¥25.3 billion to support the content industry. By contrast, public‑private collaboration is far more advanced overseas. In 2023, the South Korean government budgeted funds worth about ¥76 billion and the U.S. government provided support valued at roughly ¥600 billion. California, home to Hollywood, also offers generous subsidies and tax incentives.

Worried about the gap, the ruling Liberal Democratic Party adopted an emergency resolution in November calling for a roughly four‑fold increase in Japan's related budget. The resolution stated that funding “needs to be swiftly boosted to more than ¥100 billion, on par with support in other countries.”

The administration of Prime Minister Sanae Takaichi has designated the content industry as a key target for intensive investment and plans to roll out large‑scale, multiyear support beginning with ¥35 billion earmarked in the supplementary budget for fiscal 2025.

The measures will focus on strengthening distribution networks to deliver Japan‑originated content—such as manga, anime and music—to global audiences in a more integrated way.

In particular, the government aims to support efforts to combat pirated versions of original manga used as source material for anime and dramas, as well as initiatives to raise the international profile of Japanese content.

Priority will be given to the use of artificial‑intelligence‑driven translation tools and the training of specialized translation professionals, with the goal of increasing the earning power of domestic publishers and production companies through the worldwide distribution of manga works.

Officials in fields beyond manga are also seeking support for human resources. At a meeting of a government‑appointed panel of experts attended by movie director Hideaki Anno, creator of the anime “Neon Genesis Evangelion,” participants highlighted a shortage of creators and translators working on the front lines of content production.

After the meeting, Haruhiro Tsujimoto, president of game‑software developer Capcom, explained that adapting Japanese works to the language and culture of each country—what is known as localization—requires substantial costs and workers. He added that “government support is indispensable.”

The content industry’s call for support in developing human resources reflects a growing labor shortage at production sites amid rising global demand. The anime sector in particular is struggling with a chronic lack of staff, driven by excessively long working hours and low wages, and the number of titles produced each year is on the decline.

Kimi Onoda, minister in charge of intellectual‑property strategy, emphasized that “improving working conditions is essential.” To ensure that creators can work under appropriate contracts, the government is considering the creation of a third‑party organization by fiscal 2028 to administer a certification system for works that meet standards such as providing adequate working environments.

The Japan Fair Trade Commission is also preparing guidelines that will spell out its position under the antimonopoly law on issues including how subcontracting orders are placed.

Content businesses are also in a difficult position. Unable to pass rising costs on to customers, a number of anime production companies have gone bankrupt.

An industry insider noted that “subsidies are not reaching the on‑site workplaces that need them,” particularly subcontractors. To sustain the industry, appropriate investment and financial support are needed for production companies that lack a stable business base.