Japanese cinema has been on a somewhat successful stalemate for years now, with the titles produced (at least the ones we manage to sea in the West out of the 600 the country produces every year) retaining the same, relatively high quality, even though no particular steps forward have been made for years now Regarding the state of the industry in 2023, you can read the very informative article by Mark Schilling, but the thing I have to mention is that, despite the issues, local movies definitely have four things working quite well for them, particularly this year. First of all, the big names deliver almost always, with Miyazaki, Hamaguchi and Koreeda proving the fact this year also. Second of all, the quality of anime remains high as always and thirdly, some efforts at different cinematic approaches continue to take place, even though they can almost exclusively be found in low budget and short films.