Despite the global success of anime, animation studios are at their breaking point. The most recent victim of the unending crunch is Studio Kai, which announced insolvency to the tune of ¥565 million (around $3.54 million) earlier this week.

This came as a shock for fans who had just watched major Studio Kai anime like as A Star Brighter Than the Sun and Sentenced to Be a Hero. The latter is already being hailed as one of the best breakout series of 2026, but any plans for season 2 are now up in the air. The studio is also relatively new, opening its doors officially in June 2019. It mostly gained prominence through its work on the second season of Umamusume: Pretty Derby after taking up the reins from PA Works.

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