The encyclopedia · Product & Design · Product decision · 2023
Toei spent $60M on a live-action Saint Seiya film that grossed $7M
Toei Animation's $60M English-language remake of Saint Seiya earned $6.95M worldwide — $1.09M in the US — and forced a valuation loss into Toei's accounts.
Toei Animation · 2023-04-28
What happened
Knights of the Zodiac was Toei's bet that Saint Seiya — the 1980s manga and anime franchise — could cross over as a live-action English-language film. Directed by Tomasz Baginski and starring Mackenyu, it cost a reported $60M, with Sony Pictures handling the international release. It opened in Japan on April 28, 2023 and reached US theaters on May 12.
The film grossed $6,951,086 worldwide, of which $1,090,155 came from a limited US release. In its results for the year ended March 31, 2024, Toei Animation said operating income fell because of 'losses on valuation of inventories related to Knights of the Zodiac in 1Q and an increase in advertising expenses.' The film segment's income dropped 36% to ¥6,832M, and the company reported ¥23,364M of operating income against ¥26,940M excluding the valuation loss — an 18.5% decline tied to one film.
Why it happened
- Toei priced the film for a global franchise audience that did not exist: Saint Seiya's fans are devoted but niche, and the remake gave mainstream viewers no way in.
- The US release was limited and barely pushed: a $60M film grossing $1.09M domestically means most of the market never actually got the film.
- A single film's write-down moved the whole year: the valuation loss turned what would have been near-record profit into an 18.5% operating income decline.
The lesson
A loyal fanbase is a floor, not a market. Toei budgeted for global crossover on a property with devoted but niche appeal, and the gap between those two audiences cost $53M.
Sources
- Toei Animation Financial Results Briefing Material, FY ended March 31, 2024 (valuation loss on Knights of the Zodiac; film segment income -36%)
- Knights of the Zodiac (2023) — budget $60M, worldwide gross $6,951,086 — The Numbers
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