Anime fans were quick to celebrate the massive success ofSolo Leveling, A-1 Pictures’ ambitious action-fantasy series that debuted to glowing reviews and high streaming numbers. But while the adaptation has helped Aniplex thrive financially, the studio behind the animation is not sharing in the profits. In fact, A-1 Pictures quietly reported a significant financial loss this past fiscal year.
This surprising turn has left many scratching their heads and wondering how can a studio responsible for one of the year’s biggest anime hits be in the red? The answer lies not in failure but in how anime production is structured behind the scenes. It is not thatSolo Levelingflopped. It is that A-1 Pictures’ role in the production committee model leaves it exposed to risks that are not obvious from the outside.
Solo Leveling Was a Win, So Why Did A-1 Lose Money?
A Financial Loss That Does Not Mean Failure For Solo Leveling’s Studio
In its fiscal report ending March 2025,A-1 Pictures disclosed a net loss of 178 million yen, or about $1.2 million USD. While that figure may raise alarm bells for casual observers, it does not necessarily indicate the studio is failing. Instead, the numbers highlight a systemic issue with the gap between production budgets and real production costs.
Even thoughSolo Levelingwas a massive hit, A-1 Pictures likely did not see any direct profit from its success. That is because the studio operates under Aniplex, which owns the rights to many of the shows A-1 animates. In these arrangements, the studio typically acts as a subcontractor, receiving a fixed payment to deliver the animation work.
So,if the cost of animatingSolo Levelingexceeded what Aniplex paid A-1 for its services, the studio would absorb that overage, even while the parent company turned a profit. This is a common risk under Japan’s “production committee” system, where profits go to rights holders like Aniplex, not necessarily to the animators doing the heavy lifting.
The Hidden Expense of Making a Hit Like Solo Leveling
Ambition Comes at a Price for Animation Studios
Solo Levelingis not a low-budget anime. It is full of high-octane fight scenes, intricate digital effects, and top-tier animation, especially in its final episodes. That kind of polish does not come cheap. As anime fans demand more cinematic quality, studios like A-1 are pushed to spend more on staff, outsourcing, post-production, and revisions.
If the original budget from Aniplex did not account for the full production cost ofSolo Leveling, A-1 would have been left to cover the difference.
However, if the original budget from Aniplex did not account for the full production cost ofSolo Leveling, A-1 would have been left to cover the difference. And that is what likely happened here. The ¥178 million loss suggests the cost to produceSolo Levelingwent over what was budgeted, even as the show brought success to Aniplex and its affiliates like Crunchyroll.
This kind of financial hit does not necessarily spell disaster, especially since A-1 is owned by Aniplex, which is in turn owned by Sony. The larger corporation has the means to absorb and adjust for the studio’s shortfall. But it does prove how vulnerable animation studios are to mismatched funding, especially when they’re not part of the main profit-sharing arrangement.
The Real Problem Is the Anime System, Not the Studio
Studios Bear the Burden, Committees Reap the Rewards
What is especially concerning is that this scenario is not unusual in the anime industry. Under the current production model, most studios operate on tight margins and do not receive a share of licensing, streaming, or merchandise revenue.That means even major hits likeSolo Levelingcan result inlosses if production costs are not fully covered.
For A-1 Pictures, the loss is manageable, thanks to corporate backing. But for independent studios without a parent company like Sony, similar situations can be fatal. As anime continues to expand globally and production values climb, the industry may need to rethink how budgets are structured and who benefits from success.
It is not enough for the anime to succeed. Studios have to be compensated fairly if the industry wants to retain its talent and maintain its momentum. A-1 Pictures’ loss is a cautionary tale, not of failure, but of a system that too often sidelinesthe very teams bringing these stories likeSolo Levelingto life.
