Japan also has a long history of exporting anime, dating back to Astro Boy in 1963. From Doraemon and Candy Candy to Dragon Ball Z and Sailor Moon, many Japanese anime series have risen to prominence in the global market, but without generating profits commensurate with their popularity. It was not until Pokémon and its cornucopia of exotic monsters broke onto the scene in 1998 that anime entered the mainstream of the global entertainment business. Japan dominates the global market for televised animation with a 60% share, and anime films have gained international acclaim, as evidenced by Studio Ghibli's Spirited Away, which won the Oscar for best animated feature this year.

Tokyo, the capital of Japan, is also known as the capital of anime and the birthplace of everyone's favorite characters; about 80% of all animation productions in Japan are located in Tokyo. Mitaka City in western Tokyo, is home to the Ghibli Museum, where visitors are greeted by Totoro and other Ghibli characters when they enter. The nearby Edo-Tokyo Open Air Architectural Museum served as an inspiration for anime director Hayao Miyazaki in creating the gargantuan bathhouse and other structures in Spirited Away. While Tokyo has no public museums dedicated to anime yet, the Film Center at the National Museum of Modern Art has an archive of over 2,300 films that includes many anime.