The famous studio(or hated by some people) is letting go 75 percent of its workforce in 5 year plan due to lack of sales despite their aggressive marketing and very liberal use of fan service lately (Strike Witches).
ANN source
With such reduction, it is postulated by many pundits either they going to outsource anime works with outside countries like Vietnam or Korea, or they will co-produce with other animation studio.
Sad end for a studio that used to give us Vandread,Last EXILE and Druaga. No news however if they going to cancel Shangri-La. I do personally wondered who is next to fall, the economic slump will surely have big effect on anime industry as a whole.
Early entry.
Rumor is GONZO will now focus on MMORPGs and hentai. Remains to be seen.
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