Sony is doubling down on Japanese cinema as Hollywood struggles with a post-pandemic slowdown and what analysts are calling “sequel fatigue”.

A Japanese company wanting to produce more Japanese films might not seem like news. But it’s a significant pivot.

Sony Pictures Entertainment Japan (SPEJ) was once primarily a distributor of US blockbusters.

In 2025, it will produce a record eight Japanese films.

That slate includes Scarlet, a new anime feature from acclaimed director Mamoru Hosoda, and Hero’s Island, a live-action adaptation of Junjo Shindo’s prize-winning novel.

The interest in local productions follows the runaway success of Kokuho, a kabuki-themed live-action drama co-produced by Sony subsidiary Aniplex.

The film has grossed more than US$80.9 (A$123 million), making it the second-highest-earning live-action Japanese film ever.

Producer Chieko Murata has likened its lavish production values to haute couture, arguing that higher budgets and better technology can elevate Japanese films to global appeal.

Hollywood’s grip on the Japanese box office has weakened in recent times.

In 2024, only Pixar’s Inside Out 2 and Universal’s Despicable Me 4 cracked the top ten rankings, while anime and live-action local productions dominated.

It appears that pandemic-era production delays, strikes over AI, and an overreliance on sequels are now catching up with America’s once all-conquering film industry.

At the same time, anime franchises, such as Demon Slayer, have been continuing to expand their international reach.

SPEJ is now planning to leverage the group’s global network – Sony Pictures in Los Angeles, (Sony-owned) Columbia Pictures, and Sony’s music arm Aniplex – to push Japanese content abroad.

Japan may soon be offering a lot more than just Godzilla flicks

Scarlet will be distributed internationally by Sony, which seems to be treating it as a test case for whether Japanese films can fill the void left by struggling Hollywood titles.

The opportunity is significant. Japanese film exports rose 12% in 2024 to a record US$540 (A$825 million), though they still trail gaming and anime revenues.

Daisuke Kadoya, who became head of SPEJ’s international productions in 2023, is bullish about the future of Japanese films, especially big-budget ones that can potentially appeal to a mass, rather than an arthouse, audience.

Kadoya, who has brought at least 10 Japanese films to fruition over the last couple of years, says, “We’re selecting projects with enough entertainment value to target at least 1 billion yen [A$13 million] in box office revenue.”