J
apanese video games and anime stick close  together. The two court similar audiences, and the cross-pollination  goes far beyond the assortments of anime-based games and game-based  anime. Manga creators and anime artists design game characters all the  time, animation studios routinely work on games, and countless names  jump from one field to the other. 
Cowboy Bebop writer Keiko Nobumoto worked on the first 
Kingdom Hearts. 
Gurren Lagann director Hiroyuki Imaishi crafted the opening of 
Samurai Legend Musashi.  So it goes with a thousand more examples. Bore deep enough into just  about any Japan-made game, and you'll see some anime influence.
This complex little web formed over many years of pop-culture  symbiosis, as the fortunes of the nation's game and anime industries  rose and fell. They're promoted, fed off, and perhaps even damaged each  other. All the while, it's gotten harder to separate them.
THE NEW KID
Japan's animation market was well established by the time video games  arose in the late 1970s. The anime industry had grown steadily since  the first Toei films of the late 1950s and "manga god" Osamu Tezuka's  pioneering TV series of the 1960s (which began with the international  hit 
Astro Boy). Such films and TV shows were fixtures of  Japan's entertainment, and a steady swell of hardcore fans was building  around more niche shows.
The game industry, by contrast, was only beginning. 
Space Invaders had set the tone for a burgeoning generation of Japanese arcade games, and soon the likes of 
Pac-Man and 
Donkey Kong found worldwide fame. Yet this was territory the anime industry had explored already, as names like 
Astro Boy and 
Speed Racer proved successful in overseas markets years prior. Anime was a viable Japanese export long before video games came along.

As the game industry grew, however, so did its collusion with anime.  The rise of Nintendo and the Famicom helped a great deal, and by the  mid-'80s it was widely apparent that video games were no quick and dirty  fad. The first major game-derived anime emerged in the summer of 1986  with two shamelessly commercial films. 
Super Mario Bros.: The Great Mission to Rescue Princess Peach showed off Nintendo's biggest characters, while 
Running Boy Star Soldier no Himitsu  promoted Hudson Soft's shooters, game controllers, and early  professional gamer Takahashi Meijin. In fact, Hudson embraced cartoons  even quicker than Nintendo. By the end of the year, kids could watch  Meijin and other Hudson characters in a TV series called 
Bug-tte Honey.
Both games and anime grew remarkably in the second half of the '80s,  and they were aided by one thing above all others: a runaway economy. A  housing bubble and financial growth turned the rest of the decade into a  highly profitable era, and it showed. Anime expanded with the debut of  direct-to-video releases, dubbed Original Video Animation (or Original  Animation Videos). Freed from the restrictions of television, this new  format allowed for shorter projects that were experimental, indulgent,  and aimed at the rising tide of devoted young-adult anime fans. This  widening audience of self-styled "otaku" covered all sorts of tastes,  but most prominent was a demand for violence, sex appeal, and storylines  beyond what was allowed on TV.

The games of the era quickly seized on this same trend. One of the first was Telenet and Wolfteam's 
Valis,  a side-scroller released for home computers in 1986. It dressed a  blue-haired, wide-eyed schoolgirl named Yuko in an armored bikini and  droped her into a monster-filled fantasyland, a premise straight out of  the era's niche anime hits (specifically, 1985's 
Leda: The Fantastic Adventure of Yohko).  Valis became Telenet's top property in the years that followed, due in  no small part to the advent of the PC Engine and CD-based video games.  The new format allowed for cutscenes and voice acting in convincing  anime style, and Valis was hardly the only game that took advantage of  it. 
Cosmic Fantasy, 
Tengai Makyo, Emerald Dragon, 
Ys,  and various others did their best to evoke Japan's animation trends,  often employing anime studios in the process. Many games were following  anime's lead as the 1980s concluded, yet that dynamic was about to  change.
THE POWER DRIFT
As the '90s started, Japan's economic bubble ended. A recession set  in by 1992, and leaner times ensued throughout the anime industry.  Well-funded pet projects and big-budget films grew less frequent, and  the realm of TV animation got cheaper and more predictable. Japan's game  companies were by no means immune to the ebbing finances, but the  biggest players were still doing well in overseas markets. Nintendo,  Konami, Capcom, and other titans had little to worry about. Sega, for  one, fared better in Europe and North America than it ever did in Japan.
"In the late '80s, the games industry was the poor sister and only  people who were really into games wanted to work in it," recalls Jan  Scott-Fraizer, who worked at various Japanese animation studios for 13  years. "But then there was a huge explosion in popularity and game  company's incomes swelled tremendously. They started to poach talent  from anime companies, so they were seen as a threat to some degree. Then  the anime industry tanked in the late '90s. But games were booming, so  there was a big loss of talent and anime became the poor sister."
The brightest Japan-bred games enjoyed international appeal, while  the anime industry kept a much lower profile in North America and  Europe.  Officially released anime titles were still expensive and  obscure in the U.S., and getting a steady supply of movies or TV series  involved tape-trading and college anime clubs. This led to a strangely  inverted relationship, one where games introduced many American kids to  the look of anime and manga. Whether through the pilot portraits of U.N.  Squadron or the animated cutscenes of the 
Lunar  RPGs, video games were often the standard-bearer for "that big-eyed  cartoon look" in North America. Indeed, as the U.S. anime market grew in  the late 1990s, publishers often went for familiar game licenses,  buying up everything from Capcom's generously financed 
Street Fighter II: The Animated Movie to a brief 
Panzer Dragoon video.
Anime and game companies were by no means bitter rivals, of course.  Many anime studios continued to collaborate with game developers, and  technology brought the two closer together.

"Game animation, especially openings, had increasingly more money put  into it and we were working at video-level quality, if not movie, so it  looked good but required more work," says Scott-Frazier, who handled  compositing on the 
Ghost in the Shell PlayStation game's intro and served as technical director for the animated scenes in 
The Granstream Saga  and Madou Monogatari. "Schedules were somewhat softer than anime series  schedules at the time as well. The Ghost in the Shell game opening was  really amazing, and really expensive, and opened the door to a lot of  opportunities for us and others."
Yet the road to game development remained hazardous. Scott-Frazier  states: "I did not want to work for a games company because the market  changed so fast that one bad step could take a company out.  I worked as  animation supervisor for 
Quo Vadis 2, and shortly after the  game was released, GLAMS, the company who produced it, took a huge  financial hit and the president bailed out and ran off into the night. I  watched a couple companies work hard on games but other companies  released similar games before they did and sucked up the market."
Among the companies eyeing the game industry was Gainax. In 1987, the  fledging anime studio secured a record-setting budget for their first  film, the sumptuously animated 
Royal Space Force: The Wings of Honneamise.  Yet the movie couldn't make back its expense, and Gainax struggled  financially. They were quite familiar with video games, taking part in 
Alisia Dragoon and the popular 
Princess Maker titles. After they failed to turn profits with the TV show 
Nadia: The Secret of Blue Water  in the early '90s, Gainax co-founder Toshio Okada suggested that the  company give up on anime and create games full-time. Other founding  members disagreed.
"Gainax's involvement in anime was the very thing that gave it its  foothold in the gaming industry," studio co-founder Yasuhiro Takeda  writes in 
The Notenki Memoirs. "Dropping anime in favor of games was precisely the wrong way to go about things."

Takeda would be proven right before long. After several false starts, Gainax launched a TV series called 
Neon Genesis Evangelion  in 1995. It set an unsuspecting anime market aflame and led to two  theatrical films and untold heaps of merchandise. It remains Gainax's  biggest moneymaker today, and there's never a shortage of 
Evangelion inspired video games.
Others in the anime industry were willing to cross over to games  during the 1990s, the most prominent case being Yoshinori "Iko" Kanada.  One of Japan's most influential animators, Kanada first brought a fluid  perspective to giant-robot shows of the '70s, and his style would appear  in numerous anime landmarks: the 
Yamato series (known here as 
Star Blazers), 
Galaxy Express 999, 
Akira,  and the films of Hayao Miyazaki. Kanada was widely revered for his  animation, though his only directorial work was the 1984 video release 
Birth. In 1998, Kanada joined the staff of Square Enix. Though he returned to animation for the 2001 film 
Metropolis, the past decade saw him working primarily on the CG cutscenes of games like 
Final Fantasy IX and 
Crisis Core. Kanada passed away in 2009, his last credit coming as storyboard director on 
Final Fantasy XIII.
THE MODERN MESS
In the summer of 2008, director Satoshi Kon attended a showing of his  films at New York's Lincoln Center, and a member of the audience asked  how one might get a job in the anime industry. Kon, regarded as one of  the best filmmakers in anime, half-jokingly responded that Japan's  animators made so little money that he couldn't recommend such a career.
There was much truth in Kon's jest. The present-day anime industry is  a grim place where funds are scarce, audiences are shrinking, and  experimental projects are rarely approved. Anime has always been a  largely commercial endeavor, but the current climate makes it especially  harder to break out of convention. And this applies to the anime market  in America as well as Japan.
The '90s ended on a positive note for anime in North America. After kids flocked to 
Dragon Ball Z, 
Gundam Wing, and the multimedia craze of 
Pokemon,  TV stations grabbed more and more anime properties. Around 2005, anime  had an international presence like never before. Cartoon Network's Adult  Swim block dedicated hours to everything from 
Cowboy Bebop to 
Fullmetal Alchemist,  anime sections at Best Buy and Suncoast took over entire walls, and  studio Gonzo crafted a multi-million dollar TV series called 
Afro Samurai for Western audiences.

Everything came crashing down to earth in the decade's second half.  The excitement over anime led to bloated prices and bidding wars among  Japanese studios and North American companies, who often paid obscene  amounts for shows before full production began. Meanwhile, many of these  series failed to strike it rich in North America. Anime fans eagerly  snatched up hits like 
Naruto and perpetual sellers like 
Neon Genesis Evangelion, but they showed far less interest in titles like 
Fighting Spirit or 
Tokyo Majin  (the latter of which cost its U.S. licensor nearly $780,000). American  anime publishers were laden with too many mediocre series that their  teenage target audiences could just as easily swipe from the Internet.  Many companies shut down, and today the market is dominated by one major  survivor, FUNimation.
A second bubble had burst for anime, and it was yet another setback  in Japan's animation sector. Today, the industry is plagued by low wages  and a paucity of talent. Despite frequent claims of Japan's game  companies losing their edge, they remain much more lucrative than their  anime counterparts. A 2010 report from the Digital Content Association  of Japan put the average yearly salary at 5,184,995 yen (roughly $66,000  today). Meanwhile, a 2005 release from the Japan External Trade  Organization stated that two-thirds of anime industry employees made  under 3,000,000 yen ($38,000), with one fourth earning under 1,000,000  yen ($12,000) per annum. In the face of such figures, it's apparent why  the game industry is stealing would-be animators.

     The industry still has its successes, usually bred from popular manga like 
Naruto and 
One Piece, but many studios now depend on a less mainstream taste called "moe."     
 
 "It's hard to use the word 'steal' when conditions are so bad for  employees of the anime industry," says Matt Alt, a Tokyo-based author  and translator whose work includes a number of game localizations.  "Twenty-five percent of people in the anime industry aren't making a  living wage. And since the majority of the grunt work, the  'in-betweening' that used to serve as a training ground for young  talent, is being outsourced abroad, it's harder and harder to make one's  way up the ladder. From that standpoint you can say that the game  industry is a lot healthier of a place for the average employee right  now."
The industry still has its successes, usually bred from popular manga like 
Naruto and 
One Piece, but many studios now depend on a less mainstream taste called "moe." Though vague in definition, 
moe  frequently involves hyper-cutesy anime girls in one form or another,  with the additional aim of lulling the viewer into some cartoon  facsimile or nostalgia or romance. In its most virulent strain, the 
moe trend leads devoted geeks to obsess over fictional characters, and it's increasingly common in the game industry.
In fact, it's not difficult to trace anime's current reliance on 
moe  back to video games, or at least to the realm of dating simulators.  First introduced on computers in the 1980s, dating sims grew to include  both adults-only fare as well as mass-market hits like Konami's Tokimeki  Memorial. By the '90s, anime producers couldn't help but notice this  highly effective way to court nerdy predilections. In contrast to the  love triangles of '80s anime like 
Macross and 
Kimagure Orange Road, romances of the 1990s featured numerous female characters inexplicably falling for a nebbish male lead. Through series like 
Love Hina and the original 
Tenchi Muyo, the "harem" anime was established, and it conveniently lent itself to video games.
"Dating simulators and harem anime are sort of the sitcoms of the  Japanese content world as they rely on comfortable, well-known  situations and reliable, predictable protagonists and characters," Alt  explains. "They're classic otaku products that appeal to the same sort  of person who doesn't have a lot going on romantically in their real  lives."
The past decade also saw the advent of visual novels,  interactive-fiction tales driven by dialogue and branching plotlines.  They've existed in the Japanese game industry since the 1980s (when 
Dragon Quest  creator Yuji Hori got his start on murder-mystery titles), but the past  decade witnessed a spike in visual novels that sparked their own  multimedia franchises. Some of these visual novels lean heavily on the  same props as a dating simulator, while others tell broader stories.  Fate/Stay Night was originally an adults-only visual novel about a  supernatural tournament waged by historical figures, but its ensuing  mainstream popularity earned it a manga series, two different anime  series, and at least three subsequent video games--one of which,  Fate/Extra, was just released in North America. While most anime series  are still based on manga or toy lines, each new TV season includes  several shows based on visual novels or dating sims.

If many have forsaken animation for the fields of video games, others  trudge on through the anime industry. One of the most oft-praised new  talents in the field is Makoto Shinkai, who began his career as an  animator at RPG powerhouse Falcom. In 2001, he left the company to  write, direct, and animate a short film called 
Voices of a Distant Star. Its resounding critical acclaim led Shinkai to a coveted director's spot, and his most recent movie, 
Children Who Chase Lost Voices, premiered last year.
Yet Shinkai represents a mere handful of newcomers in an industry  starving for fresh ideas. The anime world lost one of its brightest  talents when Satoshi Kon passed away in 2010, and other directors find  themselves limited to productions that pander to a small and  none-too-discerning crowd. And while the game industry is clearly riding  higher in finances and prestige, its deepest problems mirror those of  anime.
"There have always been niche productions in Japan, and that has been  one of its strengths as a content producer," Alt says. "But now many  feel Japanese creators are suffering from a Galapagos effect, in which  Japanese companies rely on safe bets for domestic sales rather than  aiming for potentially higher profits abroad."
If Japan's game industry loses its wide appeal, it may well head down  the same path that anime faces. And perhaps that's all the more reason  for the two markets to combine resources. Whatever the future may be,  they're in it together.
 
  
     Todd Ciolek blames the anime industry's woes on its failure to make a TV show about the Sega Genesis classic 
Trouble Shooter. There's your crossover smash, folks.