Even Miyazaki's most outlandishly imagined creatures have an unnerving realism. The eerie, poignant No Face in "Spirited Away" is a creature who wears a mask, whimpers softly, and eats everything in sight, greedily eager for communion with others; he glides along like an inky rain cloud, and expands just as ominously. In the same film, a flock of white paper birds flash through the sky: they are like origami, only sharp-edged, and capable of drawing blood.

Miyazaki's starting point for a film, Suzuki said, is often a small visual detail. Five years ago, when Miyazaki read a Japanese translation of the book "Howl's Moving Castle," by Diana Wynne Jones, a British author, he was immediately taken with the idea of a castle that ambulates around the countryside. "The book never explains how it moves, and that triggered his imagination," Suzuki recalled. "He wanted to solve that problem. The first thing he did on the film was to start to design the castle. How would it move? It must have legs, and he was obsessed with settling this question. Would they be Japanese warrior legs? Human-type feet? One day, he suddenly said, 'Let's go with chicken feet!' That was, for him, the breakthrough." Suzuki thinks of Miyazaki's approach as uniquely Japanese: "In traditional Japanese architecture, you start with one room—maybe the alcove, where you hang some pictures. You spend a lot of time trying to pick the right shelves, the right little pillar, what kind of handles the drawers will have. Only when you finish that room do you worry about the next. In the West, you start from the general and go to the specific. A Hitchcock movie might start off with a panorama of the city, and then the camera closes in on a street, and a house, and then the stairway inside. If you're a Japanese filmmaker, you might start with the railing on the stairway. When Miyazaki makes a film, he is thinking, like with this new one, O.K., first off, here are two very important points to settle: Does Sophie, the little girl in the movie, have braids or not? Are they long or short?"

But it wouldn't be quite right to describe Miyazaki's approach as wholly Japanese. As with fantasy writers in the British tradition, from C.S. Lewis to J.K. Rowling, Miyazaki makes the details of the worlds he creates concrete and coherent, so that we might better suspend our disbelief for the big leaps of fantasy. This devotion to realism, Suzuki acknowledges, "is rare in Japanese animation," which tends to revel in the freedom from earthly laws that the medium allows. Miyazaki can be steely in pursuit of this goal. In a Japanese television documentary about "Spirited Away," he is shown at a meeting with his young staff, explaining how they are to draw certain images based on his storyboards. "The dragon is supposed to fall from down the air vent, but, being a dragon, it doesn't land on the ground," Miyazaki says. "It attaches itself to the wall, like a gecko. And then—ow!—it falls—thud!—it should fall like a serpent. Have you ever seen a snake fall out of a tree?" He explains that it "doesn't slither, but holds its position." He looks around at the animators, most of whom appear to be in their twenties and early thirties. They are taking notes, looking grave: nobody has seen a snake fall out of a tree.

Miyazaki goes on to describe how the dragon—a protean creature named Haku, who sometimes takes this form—struggles when he is pinned down. "This will be tricky," Miyazaki says, smiling. "If you want to get an idea, go to an eel restaurant and see how an eel is gutted." The director wriggles around in his seat, imitating the action of a recalcitrant eel. "Have you ever seen an eel resisting?" Miyazaki asks.

"No, actually," admits a young man with hipster glasses, an orange sweatshirt, and an indoor pallor.

Miyazaki groans. "Japanese culture is doomed!" He says. When he describes a scene in which his heroine, Chihiro, forces open the dragon's mouth to give it medicine, he says the animators should be thinking, as they draw, of what it's like to feed a dog a pill, when you tip its head to the side, and "the dog clenches its teeth and its gums stick out." There is more note-taking, but no sign that this might be a familiar experience.

"Any of you ever had a dog?" Miyazaki asks.

"I had a cat," somebody volunteers.

"This is pathetic," Miyazaki says. The documentary shows the chastened staff making a field trip that night to a veterinary hospital, videotaping a golden retriever's gums and teeth, and then returning to the studio to study the video.

It seems almost inevitable that the world's greatest animator should be Japanese. Over the past decade or so, Japan has become, outside the United States, the most successful exporter of children's pop culture. With television shows like "Poké-mon" and "Yu-Gi-Oh!," which have large casts of creatures accompanied by their own stats and trading cards, the Japanese figured out how to tap into children's mania for collecting and classifying. With shows like "Hamtaro" (Little Hamsters, Big Adventures") and "Sailor Moon" (in which giggly, shopaholic schoolgirls turn into saviors of the world), they got the idea that overmuscled superheroes, as alluring as they are, can seem out of reach, whereas smaller creatures that are simultaneously cute and powerful are easy to identify with. With Hello Kitty—the blank, big-headed cartoon cat—they proved that innocence was an aesthetic that could be pushed to extremes. Sanrio, the company that manufactures tens of thousands of Hello Kitty products—from pink vinyl coin purses to packets of "sweet squid chunks" bearing her wide-eyed likeness—is a billion-dollar business.

One reason the Japanese are so good at this kind of thing is that many adults in Japan are curiously attuned to cuteness. Even in a cosmopolitan city like Tokyo, kawaii—or "cute" culture—is everywhere: road signs are adorned with adorable raccoons and bunnies; stuffed animals sit on salarymen's desks; Hello Kitty charms are offered for sale at Shinto shrines. It is also a culture where anime (cartoons) and manga (comic books) are both widely consumed and, in some cases, highly regarded as art and literature. No one knows exactly why comic books are so popular in Japan; one theory is that they grew out of woodblock prints and seemed naturally connected to a broader artistic tradition that produced some of its best work in ephemeral, everyday objects like fans and screens. In any case, manga make up nearly half of the book sales in Japan, and you see people of all ages reading them on the subway. Animated programs, of which ninety or so air on Japanese TV every week, have long been shown in prime time, on the assumption that families will watch them together. And while much anime and manga is intended for adults—violent sci-fi and pornography, as well as contemplative family dramas—the market for children remains the largest. Although much of Japan's kid-oriented anime has been exported to the U.S., a great deal more—such as "Anpanman," a hugely popular series about a bean-paste-stuffed bread roll—has not. (A fan Web site notes, "To a non-Japanese person, the concept of a living bread superman who fights giant germs and feeds the hungry with pieces of his head may seem bizarre.")

Miyazaki distances himself from all this commercialism. He doesn't care for a lot of contemporary Japanese animation. "Animators are getting too old," he told me. "Animation used to be for young people. Now people in their forties are the ones who are supporting it." When he watches movies at all these days, he said, he prefers documentaries, especially "the simple ones that just try to show other people and other civilizations. They have their own distortions, but, still, I like them." He is a leftist who thinks that too many people are making money off children, who frets over the spectre of virtual reality "eating into our emotional life," and who wishes that we could drastically reduce the number of video games and DVDs available for sale. He worries that he is contributing to the problem by making anime himself, and isn't keen on promoting his own films, which is one reason that he resists giving interviews.

Several people who know Miyazaki told me that mothers frequently approach him to tell him that their child watches "Totoro" or "Kiki" every day, and he always acts horrified. "Don't do that!" he will say. "Let them see it once a year, at most!" In an essay he wrote in 1987, he was already concerned: "No matter how we may think of ourselves as conscientious, it is true that images such as anime stimulate only the visual and auditory sensations of children, and deprive them of the world they go out to find, touch, and taste." And yet he would not be quite the figure he is—recognized by children on the street, in a position to make just about any movie he wants—in a country that did not honor animation and fetishize childhood quite so much.

Hayao Miyazaki was born in Tokyo in 1941. His father helped run a family-owned factory that made parts for military airplanes. His mother, like the mother in "Totoro," was sickly and often bedridden, but she was also smart and strong-willed. "My grandfather was affluent, and he knew how to live," Goro Miyazaki, one of the director's two sons, recalled. I spoke with him last summer at the Ghibli Museum, where he is the curator. "He liked to have fun—he liked to go to restaurants and movies. My grandmother was very intelligent and not particularly interested in going out. She had her own mind and she didn't like to spend money. She exerted a huge influence on Miyazaki. When he was young, he had all these questions—big ideas—and it was his mother he could talk to about them. He was on of four boys, and he was the closest to her."

His friend Suzuki was more direct. "He was a mama's boy," he said. Suzuki thinks the fact that there is always an old woman in Miyazaki's films, and that she is often a trenchant character, is a tribute to the director's mother. "When he was small, and his mother was ill, the four brothers took turns helping out with chores. But he loved her the best of all of them." (Like the tough grannies in his movies, Miyazaki's mother surprised everyone by living into old age.)

Neither of Miyazaki's parents was artistic. "My grandfather liked buying paintings, and he liked to show them off to guests," Goro Miyazaki said. "But I don't know that he had any particular artistic understanding. It's a mystery where Miyazaki's talent came from. He had a kind of a complex toward his brothers, and that gave him a strong motivation to succeed at animation. His brothers went into business; they were more influenced by their father. But success wasn't easy for him. He wasn't dexterous, and he really had to work to achieve what he has."

At Gakushuin University, in Tokyo, Miyazaki studied economics and political science. But he also joined a children's-literature group, where members read and discussed fantasy fiction. As a senior in high school, Miyazaki had sneaked out to see the first Japanese animated film made in color, "The Legend of the White Snake," when he was supposed to be studying for his entrance exams. The film had a big impact on him, he wrote years later, because while he could see that it was "cheap melodrama," its naked emotionalism touched him. "My soul was moved and I stumbled back home in the snow that had just started. Comparing my pitiful situation to the characters' earnestness, I was ashamed of myself, and cried all night." At the time, he had been trying to write a sophisticated, absurdist manga, but he realized, somewhat to his embarrassment, that he was more interested in creating something sincere.

In 1963, Miyazaki went to work as a rookie animator at Toei Animation, in Tokyo, which primarily made cartoons for television. The company's animation had a particular style—the style we associate with anime in general, though not so much with Miyazaki—and it derived mainly from economic necessity. Japanese studios were not the wealthy behemoths that Disney and Warner Bros. were, and they saved money by having animators draw fewer cels. The result was jerkier, with more stilted movements and longer close-ups, in which faces often filled the screens: a kind of cut-rate Expressionism. The big, round eyes that Westerners associate with anime because signatures then—the legacy of Osamu Tezuka, the comic artist who, in the nineteen-fifties and sixties, drew Astro Boy and Kimba the White Lion. (One theory is that Tezuka was influenced by Betty Boop, who was very popular in Japan.) Miyazaki admired the soulful Tezuka, but his influences were more cosmopolitan: he loved Chagall, Bosch, and the Russian animators Lev Atamanov and Yuri Norstein, who made bewitching animations based on Russian folktales. His image of Japan was so shaken by memories of the country's postwar devastation that for years afterward, he told Kurosawa, his imagination turned reflexively to Europe—a fantasy version, stitched together in his mind, that had never experienced the Second World War. (In his films, Europe looks like a harmonious amalgam of Scandinavia, Alsace, and the Amalfi coast, with a bit of Dalmatia tossed in.)

At Toei, Miyazaki met Akemi Ota, an animator, whom he married in 1965, and who decided to stay at home when the couple's two sons were young. (Goro, who was a landscape designer before going to work at the Ghibli Museum, was born in 1967; Keisuke, an artist who makes intricate wood engravings, was born two years later.) On his first job at Toei, Miyazaki also met Isao Takahata, an animation director with an intellectual bent, who had graduated from the University of Tokyo with a degree in French literature; and Michiyo Yasuda, the gifted color designer, who went on to work on most of his films. The three of them were officials of the animation workers' union, and spent a lot of time during union meetings discussing their own artistic futures, which they were determined to entwine. "It wasn't too philosophical—more practical," Takahata recalled. " 'O.K., you're drawing a robot. It's got to be heavy. What kind of holes does it make in the ground when it moves?' We talked a lot about the challenges of depicting things correctly."

In the seventies, Miyazaki and Takahata both took jobs at Nippon Animation. Between 1974 and 1979, Miyazaki was a key artist or scene designer for five of Takahata's television series, including "Heidi," and worked on a film for television that Takahata directed: "Panda! Go Panda!," a funny, sweet movie featuring a spirited, pigtailed, pug-faced little girl—the precursor of Miyazaki's own heroines. "She was modeled on Pippi Longstocking," Yasuo Ohtsuka, an animator who worked with Miyazaki on several projects, said. "Miyazaki wanted to draw an audacious, energetic little girl—they're just a lot more fun to draw. We thought of her as a girl from American or European literature, because Japanese girls aren't—or weren't, anyway—all that high-spirited."
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