5 April 2013 11:45 AM, PDT | EW - Inside Movies | See recent EW.com - Inside Movies news »

Visual effects artists routinely work miracles onscreen, helping Hollywood generate billions of dollars every year at the box office. Still, the VFX industry is now in a state of crisis. In the past seven months, two leading F/X houses, Digital Domain and Rhythm & Hues, have gone into bankruptcy, and several other companies have had to lay off workers. “Right now it’s near rock bottom,” says Peter Oberdorfer, a former VFX artist who now runs a digital-technology consulting firm. “The pressure is building to a point where it could get volatile for everybody involved.”

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- Josh Rottenberg

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