FromSoftware's recent announcement of increased starting salaries 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 current challenges.
FromSoftware's Counter-Trend Salary Increase
FromSoftware Boosts Starting Salaries by 11.8%
While 2024 has seen significant job cuts 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 its commitment to fostering a rewarding work environment conducive to creative development, citing this salary increase as a key step in achieving that goal.
In 2022, FromSoftware faced criticism for comparatively lower wages than other Japanese studios, despite its international success. Previously reported average annual salaries of approximately ¥3.41 million (roughly $24,500) drew concern, particularly regarding the high cost of living in Tokyo. 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 (from ¥235,000 to ¥300,000) by the start of its 2025 fiscal year.
A Divergent Path: Western Layoffs vs. Japanese Stability
The global video game industry experienced unprecedented layoffs in 2024, with thousands of job losses at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. The total surpasses 2023's 10,500 figure, highlighting a turbulent year. While Western studios often cite economic uncertainty and mergers as reasons, the Japanese game industry presents a contrasting picture.
Japan's stable employment landscape is largely attributed to robust labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections and limitations on unfair dismissal create significant barriers to mass layoffs.
Furthermore, many prominent Japanese companies, including Sega (33% wage increase in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%), have implemented salary increases, even amidst lower profits in 2022. These actions may reflect a response to Prime Minister Fumio Kishida's national push for wage hikes to combat inflation and improve working conditions.
However, the Japanese industry isn't without its challenges. Long working hours, often exceeding 12 hours daily for six days a week, are common, particularly affecting the vulnerability of contract workers whose contracts may not be renewed without being classified as layoffs.
While 2024 marks a grim record for global video game industry layoffs, Japan has largely avoided the widespread cuts. The long-term sustainability of this approach amidst increasing global economic pressures remains to be seen.
