Moving Words 3The Visual Effects industry in Hollywood is in the midst of a crisis that just seems to be getting bigger and bigger. Entertainment Weekly has been keeping on top of the issue and posted a story today that included Peter Jackson’s thought on the problem.

In this week’s issue of Entertainment Weekly, The Hobbit director Peter Jackson, a digital effects pioneer who co-founded the F/X company Weta Digital, says studios are taking advantage of an oversupply of F/X houses to drive down prices. “Competition between VFX houses, which the studios obviously use to their advantage, has resulted in VFX houses operating on tiny profit margins,” Jackson says. “And when we talk ‘profit,’ it’s not about the owners buying a Porsche at the end of a big movie — it’s about having a nest egg to ride out the slow periods.”

To read the full story and see links to other stories about the VFX crisis, head on over to