FromSoftware's recent salary increase for new graduates stands in stark contrast to the widespread layoffs affecting the gaming industry in 2024. This article explores FromSoftware's decision and the broader context of the industry's current challenges.
FromSoftware's Counter-Move: A Significant Salary Boost
FromSoftware Raises Starting Salaries by 11.8%
While 2024 has seen numerous video game companies announce layoffs, FromSoftware, the developer behind acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio has implemented 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, FromSoftware emphasized its commitment to a stable and rewarding work environment conducive to game development.
This move addresses past criticism regarding relatively low wages compared to other Japanese studios, despite the company's global success. Previous reports indicated an average annual salary of around ¥3.41 million, a figure some employees felt insufficient to cover Tokyo's high cost of living. This adjustment aligns FromSoftware's compensation more closely with industry benchmarks, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).
A Diverging Trend: Western Layoffs vs. Japanese Stability
The global gaming industry experienced a turbulent 2024, with unprecedented layoffs affecting thousands of employees at major companies such as Microsoft, Sega of America, and Ubisoft, despite record profits. Over 12,000 jobs were lost worldwide, exceeding 2023's total of 10,500. While Western studios often cited economic uncertainty and mergers as reasons for these cuts, the Japanese gaming sector largely avoided this trend.
Japan's robust employment landscape is attributed to 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.
This stability is further reflected in salary increases at other major Japanese companies. Sega (33% increase in February 2023), Atlus (15%), and Koei Tecmo (23%) all implemented significant pay hikes. Even Nintendo, despite lower profits in 2022, committed to a 10% salary increase—possibly in response to Prime Minister Kishida's push for nationwide wage growth to combat inflation.
However, challenges remain within the Japanese industry. Long working hours and the vulnerability of contract workers are ongoing concerns.
While 2024 witnessed record-breaking global layoffs in the video game industry, Japan's contrasting approach offers a potential model for mitigating the impact of economic pressures. The long-term sustainability of this divergence remains to be seen.
