Yoyogi Seminar, the third-largest cram school in Japan, has announced the closure of 20 of its 27 schools and facilities by March 2015. That's more than a change in business plan for the large and profitable entrance exam industry. It may well signal the end of the annual ritual called "exam hell" and a major shift in Japan's attitude toward higher education in general.
The high competition that spawned the cram school industry in the late 1950s came from large numbers of students competing for the limited spots at universities. Students needed whatever help they could get, and their parents were willing to pay for it. The cram schools (yobikō or juku) analyzed the results of past exams and provided practice tests, drill practice and test taking tips.
The schools weren't cheap. As parents began to lose faith in public high schools, especially with the advent of relaxed education, they paid high fees for classes that ran late into the evening after regular school finished. Many cram school instructors became superstars, commanding salaries far higher than university professors. As a result, private spending on education in Japan became twice the average for other OECD countries, with a large portion going to cram schools.