The Ministry of Economy, Trade and Industry released a comment on June 29 in response to criticism on X that its plan to provide funding on the order of hundreds of millions of yen to major companies such as DeNA through the content industry subsidy program “IP360” amounted to “a benefit to large companies.”
The ministry explained that the measure was “not financial assistance, but an investment-promotion initiative that will stimulate approximately ¥100 billion in private investment and aim for approximately ¥400 billion in overseas sales.” It said support was necessary because “even companies with ample financial resources tend to curb investment in high-risk projects,” and added that it would “thoroughly monitor progress and manage KPIs so that the plans do not fall through.”
From X posts
DeNA, Konami, Square Enix, Sega and others selected for the “up to ¥1.5 billion” category
IP360 is a support program with a total budget of approximately ¥35 billion, offering nine categories under the government’s goal of expanding overseas sales of Japanese-origin content to ¥20 trillion by 2033. Its nine categories range from programs for individuals and startups to those for large companies with extensive track records.
The controversy centers on “Support for Large-Scale Production,” a category covering games, anime and live-action works and targeting companies with successful experience on large-scale projects, with a maximum of ¥1.5 billion per company. DeNA was among the companies selected, but the report drew criticism such as, “There is no need to spend taxpayers’ money on cash-rich companies.”
Details of IP360’s “Support for Large-Scale Production” category. Applicants are required to have sales track records of hundreds of millions of yen, among other criteria
DeNA is not the only company selected for this category. Among game companies, the selected firms include Koei Tecmo Games (developing the new game “FUJI (working title)”), Konami Digital Entertainment (a new console game project), Square Enix (new game development) and Sega (new game development).
Among anime-related companies, Aniplex (a project to establish a sustainable production system) and Trigger (a new original theatrical film) were selected, while TOHO Studios (live-action film production) was selected in the live-action category. Many other prominent companies were also included among the recipients of support.
List of selected companies
Examples of the projects approved for each company
“Even companies with ample financial resources tend to curb investment in high-risk projects”
According to the Ministry of Economy, Trade and Industry, “Support for Large-Scale Production” is “an investment-promotion initiative that will stimulate approximately ¥100 billion in private investment and aim for approximately ¥400 billion in overseas sales,” and that “providing benefits is not its purpose.”
Support for cash-rich DeNA was questioned, but the ministry explained that “because even companies with ample financial resources tend to curb investment in high-risk projects, the subsidies encourage additional investment and structural reform.”It was reported that the selection was conducted by “third-party review committee members with no conflicts of interest.”
In past similar grant programs, they supported a wide range of works, from small-scale to large-scale. They also stated that support for large-scale works had been successful, with an average of ¥100 million in public funding contributing to a ¥2 billion increase in sales, and indicated their intention of backing large-scale works on the grounds that “the impact of support may be greater.”
