The idea of adopting Perfect Blue for the screen was conceived during late 1993 when Yoshikazu Takeuchi (Author) and Koichi Okamoto (Original Producer) approached Rex Entertainment with a 90-minute live-action video project.

Production was delayed during early 1994 due to the Kobe earthquake and the decision to animate the film was made. However, Perfect Blue dealt with a subject never before addressed by ‘anime’ and it was agreed to employ the best names currently working in the industry. A new system of production would be adopted that did not fall prey to the constraints of traditional animation. It was felt that anime had not adopted the eclectic nature of manga and was in danger of confining itself to the same characters and subject matter. Perfect Blue offered a real opportunity to break the mould and create something different.

Okamoto and Takeuchi employed Hiroaki Inoue as line producer, who in turn approached Madhouse Studios with the project. Although skeptical of what he initially described as "no more than a reckless idea", Masao Maruyama (Mad House CEO) was inspired by the passion of both producer and author and decided to back the project.

Word of the forthcoming production reached Katsuhiro Otomo who had previously illustrated Takeuchi’s work. Otomo read the script and suggested that Satoshi Kon, a supervisor on his latest project (Memories), should direct the feature.

Perfect Blue premiered at the ‘Fant-Asia Film Festival’ where it proved an instant hit. It’s initial screening sold out within 30 minutes and two further shows were scheduled in order to meet public demand. As a result, Perfect Blue was awarded the Public prize for ‘Best Asian Film’.

The film went on to play numerous international festivals and attract close attention from distributors such as Miramax before being acquired by Manga Entertainment.