There were many reasons for East-West Animation Studios to cease operations. First of all, with the changes in the Japanese animation market and the changing needs of the audience, the animation works created by the Eastern and Western Animation Studios gradually lost their market appeal. Secondly, due to the conflict between the author and the editor, the lack of funds, and other issues, the creation of the East and West Animation Club had once stagnated. In addition, due to the loss of members and the chaos of the management, the operating costs of the East-West Animation Club continued to increase, eventually leading to the closure of the club.