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A couple months ago dozens of great webtoons and manhwa were cancelled in the middle of their season bc big companies like Kakao were having an acquisition war, small and medium sized companies were caught in the middle of it and now bad and mediocre ones are being renewed instead.
There's no need to talk about the US's current state with how f*cked up and chaotic it is rn, tho I do feel like a rebound is coming in the next 5-10 years.
The manga/anime industry is getting more and more corporate which is something you really don't want in a creator centric industry. The silver age with One Piece, DragonBall, InuYasha, Naruto, Bleach, etc is really great storytelling. Now what we get are reboot/sequels like Boruto and DragonBall Super or cookie cutter fantasy stories. I'm not saying everything is terrible, I mean Tensei Slime is pretty good and og stories like One Punch Man and Yozakura Family. but there are some great ones out there that deconstruct the popular narrative and show new possibilities but were snuffed out because anime producers wanted cheap and quick animation so they heavily used CGI, like Arifureta and Kumo Desu(I cannot stress this enough, I think I wrote a 4 paragraph comment ranting on about how they butchered Kumo Desu which was my fav novel), or they get cancelled bc merch and bluray sales aren't up to standard.
All the entertainment industry nowadays are looking for the next "it" thing, like Netflix cancelled Inside Job bc ratings or HBO cancelling all their cartoons bc the new exec doesn't like cartoon(its a real thing, the exec got promoted from producing reality shows), but sometimes things just take a bit longer to get people invested, imagine if they cancelled the Office on their 1st season
Japan is also getting really bad these days with getting formulaic but in a different way. You can notice that a lot of anime only get one 12 episode season nowadays and the ending is really rushed but also open ended incase they get a season 2. That's bc the industry is oversaturated. Studios can afford to mess up a popular novel/manga bc there are still thousands waiting in line to get adapted.
What they do want is merch, manga and novel sales bc that's where the real money is. OG readers want merch for their characters but there won't be merch unless it becomes an anime, so producers green light an anime for a somewhat popular series but they can't make more than one season because they think its not popular enough. So they make the anime but made sure to throw away the fun fillers and character growth and focus on plot centric episodes to streamline it for a ending. Then to make sure potential new fans would buy the manga or novel, they leave a somewhat open end mystery that would frustrate you unless you read the manga or novel.
In the case of Villainess lvl 99, there's only 4 vol of materials and arguably only the 1st vol is about the demon war so in a monetary standpoint they only need to make one half baked, condensed season and generate interest for the manga and novel.