Isekai: The Live-Service Trend of Manga and Anime That’s Impacting Profits

2026 seems to be the year when game developers finally realized that diving headfirst into live-service games isn’t the best strategy, especially when everyone else is doing the same. Interestingly, a similar situation is unfolding in the anime and manga world, as Kadokawa has just reported a staggering 51.3% drop in operating profits, with shareholders pointing fingers at the company’s fixation on isekai stories.

As noted by an outlet, Kadokawa’s fiscal report for March 2026 reveals that this significant profit decline, compared to March 2025, stems from an “excessive reliance on existing winning patterns” and a “bias” towards “Isekai-type works.”

The publisher claims that its relentless production of titles like *A Harem in a Fantasy World Labyrinth* and *The Daily Life of a Middle-Aged Online Shopper in Another World* has resulted in a slew of uninspired or low-quality titles, ultimately failing to generate any standout hits. Ironically, this comes from the same company behind *Isekai Quartet*, a series that humorously critiques Kadokawa’s overabundance of isekai content.

The parallels between the anime industry’s fading obsession with isekais and the gaming sector’s dwindling faith in the games-as-a-service model are striking, as 2026 is quickly turning into a graveyard for live-service titles. Amazon has been shutting down its live-service games, Sega has pulled the plug on its ambitious “Super Game,” *Fortnite* is no longer the cash cow it once was, and Sony’s track record of canceling games-as-a-service projects is reaching alarming heights.

On a side note, it’s amusing that Kadokawa holds the manga rights to *Sword Art Online*, while Sony, which owns the anime rights, is one of Kadokawa’s biggest shareholders. The anime that arguably sparked the isekai craze revolves around being trapped in a live-service game nightmare, making it either a self-fulfilling prophecy or a forewarning of the industry’s current state.

At least the decline of isekais and live-service games signals that the gaming landscape might be on the mend. Here’s hoping that the bursting of the AI bubble and falling RAM prices are next on the horizon.