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Some things don't easily translate to live action. Animation works because it blends fantastic well, in order to pull off a giant demon fox and magic ninjas you'll need a massive budget and likely still won't feel as seemless. I would ask why even bother, but I know people will say to make money. To that I'd say I doubt a 100+ million Naruto film would make much of a profit as outside core fanbase general audiences could be a tough sell.