I believe these studios decided to close their 2D studios because they saw the success and ease of 3D animation and it was also way less expensive and time consuming as it became more and more popular. I believe this was the worst decision made, especially Disney. I think 2D animation and 3D animation can co-exist, especially where movies use a mix of both such and the Netflix series, Arcane, where a lot of the cool effects and things are 2D animated while the characters are in a sketchy style but still 3D. Disney tried to replicate this with their new movie, Wish, but just from the trailer I can tell it will not work because the choices in what to make a stylized 3D watercolor style is just awful and makes the movie look unfinish. I believe they lost their talent with 2D and it is what many people hold near and dear to them and what made them. I prefer 2D over 3D just because there is so much that can be done with it. I believe that most anime movies have a great reception, even though they take so long to make, they are beautiful in their own ways and constantly draw people in and I believe its a risk that a lot of western studios should take.