Major Anime Titans Forge Multi-Billion Dollar Partnership Set to Transform the Industry
Twin Engine, known for its work on popular anime like Vinland Saga and Witch Hat Atelier, has teamed up with Bandai Co., Ltd., a major player in toys and video games. This partnership, announced on August 5, aims to “co-create intellectual properties,” with an initial investment of 4 billion yen (approximately $25.35 million).
The collaboration will kick off with a joint project that includes the development of an original manga, an anime series, and related merchandise. The announcement highlights the growing trend of manga-based IPs branching out into animation and merchandise, emphasizing the need for a comprehensive, long-term strategy that guides these properties through all stages of development and commercialization. Twin Engine and Bandai plan to utilize their combined expertise to not only create new, successful IPs but also ensure that their planning and development are aligned with a cohesive vision.
This move signals a shift in the Japanese entertainment landscape, as the rapid global expansion of anime and related IPs pushes companies to adapt and innovate for greater profitability. Recent financial reports indicated that Kadokawa’s consolidated operating profit plummeted by 51.3% year-on-year in 2026, attributed to an overreliance on familiar formulas and a lack of originality—often interpreted as a critique of the flood of isekai titles dominating the market.
While Toei is focusing on new IPs and global outreach, there’s speculation about the potential return of a new Dragon Ball anime.
For companies in the anime industry, creating standout new IPs is crucial, but management practices also need to evolve. The traditional “production committee system,” where multiple companies collaborate to fund and produce an anime, allows for shared financial risk but often leads to production challenges. Animation studios typically work as contractors, juggling multiple projects without a share in the profits.
Recent years have seen a shift in this model. For instance, MAPPA studios fully funded the Chainsaw Man anime, retaining complete ownership and creative control. They have also formed a strategic partnership with Netflix to expand their anime projects. MAPPA’s president, Manabu Otsuka, expressed hope that animation studios will take charge of all aspects of anime production.
The deal between Twin Engine and Bandai Co. reflects this ongoing transformation in the Japanese anime industry. Twin Engine boasts a vast network of 18 animation studios, including Scooter Films and Bug Films, both established in 2021. Bandai, a powerhouse with iconic licenses like Mobile Suit Gundam, One Piece, and Dragon Ball, will oversee product development, marketing, and licensing for the new IPs.
Despite the global success of anime and manga, the Japanese entertainment sector is still grappling with the need to adapt. The outdated committee-based production system is proving inadequate for an industry that continues to grow. Major companies are increasingly moving towards in-house production to maximize profits and maintain full control over their successful IPs.
