So let's talk about 2.5D franchises like Sakura Wars or Touken Ranbu, Waifuism, and VTubers.
For context, "2.5D" means something different in the case of Japanese franchises. It's referring to how a 2D property has an additional dimension where the actors often take on a kayfabe type of role and must exist as the character in all additional material like stage plays.
Sakura Wars is basically the grandmother of all 2.5D franchises today. While you could argue that Macross is the first 2.5D franchise in that Mari Iijima was the first Pop Idol whose career was intrinsically linked to an anime, there was still a line between her and Minmay.
Sakura Wars meanwhile made it so if you saw something on stage or heard a radio play, it was the same people you'd heard in the game. It unified the idea that the voice talent and characters were inseparable.

This really coalesced when Sumire Kanzaki "retired".
It wasn't framed as Michie Tomizawa retiring from the franchise, it was *Sumire* going away. That kind of all-in concept was still very new, and was quite weird even for fans like myself.
Love Live is effectively a descendent of that whole concept and process, and comes reinforced by a tradition of large girl groups in Japanese music who "graduate" when they decide to move on. It's something that's become naturalized to the fandom.
Waifuism meanwhile has also taken hold. Arguably this one has been brewing since the late 70s when Lum from Urusei Yatsura became an anime icon, but the early 2010s are when you really see people start to latch on to the nomenclature of "waifu" and the corresponding merchandise.
VTubers are then a merging of the two vectors. You get one part Waifuism (most VTubers are cute anime girls), one part "the actor IS the character" presentation, and a dash of the girl group bit.

It's Sakura Wars but the girls are playing video games and you can talk to them.
Oji Hiroi, the guy who invented Sakura Wars, spoke in 2019 about the 2.5D trend perhaps having peaked because it didn't have anywhere natural to evolve, but I think he's been proven wrong now.
What's even more insidious about VTubers is that they're combined with the idea of independent creators a la YouTube, when in fact they're largely corporate productions.

It's like having a craft beer but it's made by Molson.
And in case you thought I missed it: Yes, Hatsune Miku is ABSOLUTELY the bridge between all of this. She is exactly the awakening point where Waifuism, 2.5D, and gaming culture smashed into each other.
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