In the wake of the collapse of its sales and marketing agreement with ADV, Geneon Entertainment has notified retailers that it is 'ceasing the sales of DVDs and all related distribution and marketing operations as of 5 pm PDT on Friday, September 28th.'  Geneon will only take orders on catalog products and on new releases with a street date of November 6th or earlier -- thus effectively canceling all post November 6th releases and prematurely ending a number of anime series including Hellsing Ultimate, Karin, Kyo Kara Maoh Season 2, Shonen Onmyoji, Black Lagoon Second Barrage, Law of Ueki, Story of Saiunkoku, When They Cry, and Rozen Maiden Traumend.  Geneon also announced that it will not accept requests for returns after 5 pm PST on November 30th.


Geneon's announcement signals the increasing consolidation of the American anime industry, which is being squeezed by high costs, declining sales, and continued illegal downloading.  For several years Geneon, which has roots in the industry that reach back to the early 1980s, has been the third-largest anime-focused player in the market (after FUNimation and ADV), and its withdrawal from the business makes this a sad day for the American anime industry.