FromSoftware's recent salary increase for new graduate hires stands in stark contrast to the widespread layoffs impacting the gaming industry in 2024. This article explores FromSoftware's decision and the broader context of the industry's struggles.
FromSoftware's Counter-Trend Salary Hike
FromSoftware Boosts Starting Salaries by 11.8%
While 2024 has seen significant job cuts across the video game industry, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio announced a substantial 11.8% increase in starting salaries for new graduate hires, raising monthly pay from ¥260,000 to ¥300,000, effective April 2025. In a press release dated October 4, 2024, the company stated its commitment to "stable income and a rewarding work environment" to support its employees' contributions to game development.
In 2022, FromSoftware faced criticism for relatively low wages compared to other Japanese studios, despite its international success. The previously reported average annual salary of ¥3.41 million (approximately $24,500) was noted by some employees as insufficient to cover Tokyo's high cost of living. This salary adjustment aims to align FromSoftware's compensation with industry benchmarks, mirroring similar moves by companies like Capcom, which is implementing a 25% starting salary increase to ¥300,000 by the start of the 2025 fiscal year.
Western Layoffs Contrast with Japan's Stability
The global gaming industry experienced unprecedented layoffs in 2024, with thousands of job losses at major companies like Microsoft, Sega of America, and Ubisoft—despite record profits in many cases. Over 12,000 jobs were cut globally, surpassing 2023's total of 10,500. While Western studios cited economic uncertainty and mergers as reasons, Japan largely avoided this trend.
Japan's robust employment landscape is attributed to its strong labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections and restrictions on unfair dismissal create significant barriers to mass layoffs.
Furthermore, many major Japanese game companies, mirroring FromSoftware's actions, increased starting salaries. Sega implemented a 33% increase in February 2023, followed by Atlus (15%) and Koei Tecmo (23%). Even with lower profits in 2022, Nintendo committed to a 10% pay raise. These increases may be a response to Prime Minister Fumio Kishida's nationwide push for wage increases to combat inflation and improve working conditions.
However, challenges remain within the Japanese industry. The Verge reports that many Japanese developers work excessively long hours, often 12-hour days, six days a week. Contract workers, in particular, face precarious employment situations.
While 2024 witnessed record-breaking global layoffs in the gaming sector, Japan's approach has largely shielded its workforce. The future will reveal whether this approach can sustain itself amidst growing global economic pressures.
