Future of Japan's anime industry in doubt.

Truly, a sad day for out-of-work tentacle monsters. From Japan Times:

The deepening recession and rapid shift in the overall landscape surrounding the industry have caused many to fear for the future of one of the nation's most prized cultural exports.

"The global fan base for Japanese 'anime' is increasing, but with the old business model crumbling it isn't translating into profits," said Yasuo Yamaguchi, executive director of the Association of Japanese Animations.

For the past decade, the industry has been hammering out average annual sales of ¥200 billion in what experts described as an "animation bubble."

Yamaguchi predicted, however, that the industry's proceeds for fiscal 2008 — which have yet to be calculated — would be lower than 2007, when total sales dropped almost ¥20 billion from 2006, a record high year, according to AJA statistics.

"The financial crisis is forcing sponsors to cut down on television advertisement fees, and this in turn is shrinking the budgets for animations, pressuring everyone involved in the production," Yamaguchi said.

"I think we'll see a major decrease in the number of anime programs broadcast. Agencies dependent on television as a primary financial source will need to search for alternatives."