FromSoftware's recent announcement of increased starting salaries for new graduates stands in stark contrast to the widespread layoffs sweeping the gaming industry in 2024. This article explores FromSoftware's decision and the broader context of the industry's current challenges.
FromSoftware Defies Layoff Trend with Salary Boost
FromSoftware Raises Starting Salaries by 11.8%
While 2024 has seen significant job losses across the video game sector, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has taken a different path. The studio recently revealed an 11.8% increase in starting monthly salaries for new graduate hires, raising the figure from ¥260,000 to ¥300,000, effective April 2025. In a press release dated October 4, 2024, the company stated this increase reflects its commitment to a stable and rewarding work environment that supports employee development and fosters the creation of emotionally resonant and valuable games.
This move addresses past criticism regarding FromSoftware's comparatively lower wages compared to other Japanese studios, despite its international success. Previous reports indicated an average annual salary around ¥3.41 million (approximately $24,500), a figure some employees considered insufficient to meet Tokyo's high cost of living.
This salary adjustment aligns FromSoftware more closely with industry standards, mirroring similar increases at companies like Capcom, which is implementing a 25% raise—from ¥235,000 to ¥300,000—by the start of its 2025 fiscal year.
Western Layoffs Contrast with Japan's Relative Stability
2024 has witnessed a wave of unprecedented layoffs in the global video game industry, with thousands of jobs lost at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. Over 12,000 game industry employees worldwide have been affected in 2024 alone, exceeding the 10,500 job losses in 2023. While Western companies cite economic uncertainty and mergers as reasons, the Japanese gaming industry has largely avoided this trend.
Japan's more stable employment environment is largely attributed to its robust labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the United States, Japan's worker protections and limitations on unfair dismissal create significant barriers to mass layoffs.
Further mirroring FromSoftware's actions, many major Japanese game companies have also increased starting salaries. Sega implemented a 33% raise in February 2023, while Atlus and Koei Tecmo saw increases of 15% and 23%, respectively. Even with lower profits in 2022, Nintendo committed to a 10% pay hike, possibly in response to Prime Minister Fumio Kishida's nationwide push for wage increases to combat inflation and improve working conditions.
However, this doesn't negate Japan's own industry challenges. Reports indicate long working hours, often exceeding 12 hours daily for six days a week, particularly impacting vulnerable contract workers whose contracts may not be renewed without officially counting as layoffs.
Despite the record-breaking global layoffs in 2024, Japan’s gaming industry has largely remained unscathed. The future will reveal whether this approach can continue to protect its workforce amidst growing global economic pressures.
