Overview of Recent Developments in Animation
- Ne Zha 2 has shattered records as the highest-grossing animated film, amassing over $2 billion worldwide.
- Disney is experiencing significant challenges at the box office, particularly in the aftermath of COVID-19, with recent films like Snow White (2025) underperforming.
- Despite Disney’s struggles, North American animation retains its vitality, as evidenced by successful TV series like Arcane and original films from studios such as DreamWorks.
In a turning tide of the animation landscape, Ne Zha 2, a Chinese animated feature, has surged through the box office, outperforming established giants like Disney and other North American studios. As Disney grapples with its recent difficulties, concerns have surfaced regarding its future dominance in the industry.
Disney has undeniably faced adversity in recent years. Once a powerhouse under former CEO Bob Iger, the company flourished throughout the 2010s, acquiring blockbuster franchises such as Marvel and Star Wars, and expanding significantly during this era. However, the past few years have marked a downward trend, highlighted by the disappointing reception of the Star Wars sequel trilogy and a struggling Marvel Cinematic Universe navigating a post-Infinity Saga landscape. Compounding these issues, Walt Disney Animation Studios has seen a decline from its celebrated 2010s resurgence, opting primarily for live-action remakes of classic films instead of original storytelling. This shift has been detrimental both to the quality of its productions and to its financial performance, necessitating attention to rising contenders like Ne Zha 2.
Recently, Ne Zha 2 has further extended its impact on the industry, with Variety reporting that this animated sensation has elevated the overall global box office forecast to an impressive $34.1 billion for 2025, a notable increase from prior estimates of $33 billion.
The sequel to its 2019 precursor, Ne Zha 2 continues the tale of a mythical demon child, captivating the Chinese audience and resulting in its historic box office draw of over $2 billion.
Disney’s Box Office Struggles Amid Ne Zha 2’s Triumph
In the wake of COVID-19, Disney has found it increasingly challenging to revitalize its box office performance and attract audiences back to theaters. The years 2023 and 2024 have proven particularly tough for the Marvel franchise. Major titles like The Marvels and Ant-Man & The Wasp: Quantumania, despite their considerable investments totaling $637.5 million, only managed to generate a combined worldwide box office of $682.2 million. After accounting for theater cuts, Disney netted just $341.1 million.
This trend of financial setbacks isn’t limited to superhero films—it reflects a larger issue for the company. The latest remake of Snow White and the Seven Dwarfs has resulted in lackluster performance, demonstrating audience fatigue from the persistent stream of reboots. Following its release, Snow White (2025) earned only $142.8 million, well short of expectations.
Counter to Disney’s struggles, Ne Zha 2 has propelled China’s overall box office revenues to an estimated $7.6 billion, a considerable rise from $1 billion, significantly driven by its success. While Disney retains the potential to influence markets worldwide, its recent missteps have diminished its commanding presence.
Is North American Animation at Risk, or is Disney an Outlier?
In spite of Ne Zha 2’s impressive success, animation continues to thrive in the North American market. The television landscape is rich with innovation, as seen in critically acclaimed shows like Arcane: League of Legends, which has become a prominent title on Netflix, alongside darker adaptations like Invincible on Prime Video.
Film studios like DreamWorks and Sony Animation are also contributing to the industry’s vitality, with original titles resonating well with audiences. For instance, The Wild Robot achieved remarkable success with a sizable return of $333.8 million on a modest $78 million budget. Additionally, the Spider-Verse franchise has garnered both critical acclaim and commercial success. Meanwhile, Pixar’s Inside Out 2 grossed nearly $1.7 billion, considered an outlier against the backdrop of its recent releases, which struggled mostly due to post-pandemic challenges and the rise of streaming platforms.
While the enthusiasm for animation in North America may not currently match that of the Chinese market, it remains robust. The shortcomings attributable to Disney reflect a broader issue of poor management and an overemphasis on generating revenue from nostalgic properties, compromising their creative vision. If Disney were to reallocate resources towards original animated content, it might present a formidable challenge to Beijing Enlight Pictures, the creators behind Ne Zha 2. However, the gap between Disney’s current offerings and the success of films like Ne Zha 2 suggests that the path to recovery may be steep.