Japan's "2025 Cliff" originated in the Ministry of Economy, Trade and Industry, Government of Japan (METI)'s 2018 report, which projected an impending crisis due to the severe ageing of legacy systems and the mass retirement of veteran engineers. 

The report warned that this would result in an annual loss of approximately ¥12 trillion ($79.2 billion) after 2025 by stifling Digital Transformation (DX).

As of late 2025, the problem remains unaddressed. While awareness and DX investment have grown, the structural challenges of legacy modernization and the acute talent shortage persist, effectively transforming the projected sudden "cliff" into a prolonged and costly struggle.