The Japanese film industry — particularly at the top, where Toho and the TV networks dwell — had a terrific 2008. Boosted by Hayao Miyazaki's animation "Gake no Ue no Ponyo" ("Ponyo on the Cliff by the Sea"), which earned a splendiferous ¥15 billion, Toho passed the ¥70-billion box-office mark for the year — a new company record. Meanwhile, the TV networks, which produce most of the biggest Japanese films and distribute most of them through Toho, scored hit after hit, including the romantic dramedy "Hana Yori Dango" ("Boys Over Flowers," TBS) and the mystery thriller "Yogisha X no Kenshin" ("Suspect X," Fuji TV).

The new year, however, looks to be tougher for the local industry — and not only because of the recession. Hollywood, which ceded a majority share in Japan to homegrown competition in 2008, will have a stronger lineup in 2009, including new installments in the "Harry Potter" and "Terminator" series, as well as "Dragonball Evolution," a highly hyped live-action version of the classic "Dragonball" anime, to be released here by 20th Century Fox.

Also expected to draw crowds are the remaining two parts of John Woo's "Red Cliff" period action trilogy set in China. The first has grossed nearly ¥5 billion, a record for an Asian film in Japan.