The Fall of a Titan: How The Iconic Studio Behind Evangelion Reached Bankruptcy

News that GAINAX – the Japanese animation studio that brought us the mecha masterpiece Evangelion – is on the verge of bankruptcy came as a shock to the anime world. The news marks a sad end for a studio that, at its zenith, was a pioneer of anime creativity. Today, we take a look at the rise and fall of GAINAX, to see what brought about the business problems that are threatening the studio, and to think about what the failure of a studio like GAINAX means for the anime industry.

The Dawn of Studio GAINAX

Then, in 1984, the budding ringleader of the movement – the now-legendary director Hideaki Anno – co-founded a small-but-passionate collective of anime fans called Studio GAINAX, setting out to ‘overthrow’ the staid, traditional anime of the day with strong, experimental storytelling and showy new animation techniques. GAINAX quickly ascended to become the go-to studio for avant-garde productions, whipsawing from hits such as Nadia: The Secret of Blue Water (1990-91) and Gunbuster (1988) to new standards in anime production.

Studio GAINAX's Magnum Opus: Evangelion

But the show that would in retrospect cement Studio GAINAX as a cultural force was the mecha anime series Evangelion, released in 1995. Unlike any other anime production before, Evangelion amalgamated the tropes of mecha shows with psychodrama, religious themes and existentialist notions. With great critical success, the series not only elevated anime to a more serious adult medium but also struck a chord globally with fans.

Financial Turbulence at Studio GAINAX

While its artistic output was varied and at times brilliant, Studio GAINAX’s financial history has never been pretty. The studio’s tilt-a-whirl ride through the 1990s was marked by debt, lay-offs, budget cuts and public runs for profit. A series of restructurings and reboots led to highly uneven results. By 2015, GAINAX’s debts had become so large that the studio sold its headquarters to help pay them.

The Impact of Evangelion and Studio GAINAX's Legacy

Shockwaves continue to reverberate through anime fandom following the news that Studio GAINAX is on the brink of bankruptcy. Anime fans the world over hold Evangelion close to their hearts, both for the pleasures of the series itself and also for the decades of fan-fiction, cosplay and critical commentary it has inspired. From the parodies of Hideaki Anno’s series at the heart of Studio GAINAX’s most successful anime, FLCL, to the similarities between Evangelion and the Studio Ghibli masterpiece Spirited Away (2001), fans can discern GAINAX’s pervasive influence on many other anime series and films.

Studio Khara Takes the Reins

Meanwhile, since Studio GAINAX was unable to pay the bills, its founder and director Hideaki Anno’s new studio, Studio Khara, formed to take the work forward, renewed the Evangelion licence and has been producing the Rebuild of Evangelion films. Despite GAINAX’s financial problems, Anno’s work will continue.

Considering the Future of Anime in Light of Studio GAINAX's Downfall

The bankruptcy of Studio GAINAX raises many fundamental questions about the future of the anime industry: how can such studios manage the workforce, the money, and the production of content? Why does anime have such a volatile track record of rapid growth and collapse? GAINAX’s story illustrates how anime studios create doubt, and then struggle to respond to it.

Understanding Studio GAINAX

Studio GAINAX was never just a place of work, and the mad scientists who founded it never forgot the dreams that motivated them. Perhaps it’s fitting that the studio, which defined an entire genre of anime, often struggled to stay afloat financially. Now, as one of Japan’s oldest anime studios, Studio GAINAX’s legacy of innovation and creativity will continue to inspire new generations of creators and fans, who will, in turn, influence the types of anime even the crustiest anime historians will be watching in another 40 years. If that doesn’t make GAINAX one of the most important pop-culture brands in history, I don’t know what will.

In sum, the story of Studio GAINAX is both a celebration of its artistic achievements and a tragic look at the turbulent environment of anime. Sayonara, GAINAX. May you rest in peace.