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's Counter-Move to Industry Layoffs
FromSoftware Boosts Starting Salaries by 11.8%
While 2024 has seen significant job cuts across the video game sector, FromSoftware, the creator of acclaimed titles like 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, FromSoftware stated its commitment to fostering a rewarding work environment that supports employee well-being and contributes to the creation of emotionally resonant and valuable games. This salary increase is a key element of that commitment.
In 2022, FromSoftware faced criticism regarding relatively lower wages compared to other Japanese studios, despite its global success. The previously reported average annual salary of approximately ¥3.41 million (around $24,500) was noted by some employees as insufficient to cover the high cost of living in Tokyo. This salary adjustment aims to align FromSoftware's compensation with industry benchmarks. This follows a similar trend set by Capcom, which plans a 25% starting salary increase—from ¥235,000 to ¥300,000—by the start of the 2025 fiscal year.
A Tale of Two Industries: West vs. East
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. Over 12,000 jobs were cut globally, exceeding 2023's total of 10,500. While Western studios often cite economic uncertainty and mergers as reasons for these cuts, the Japanese gaming industry presents a contrasting picture.
Japan's comparatively stable employment landscape is largely attributed to its robust labor laws and corporate culture. Unlike the "at-will employment" prevalent in the United States, Japan's worker protections and limitations on arbitrary dismissals create significant barriers to mass layoffs.
Many major Japanese companies, mirroring FromSoftware's actions, have also increased starting salaries. Sega implemented a 33% wage increase 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 raise. These moves may reflect Prime Minister Fumio Kishida's nationwide push for wage increases to combat inflation and improve working conditions.
However, this doesn't negate the challenges within the Japanese industry. Reports indicate that many Japanese developers endure long working hours, often exceeding 12 hours daily for six days a week. Contract workers remain particularly vulnerable, facing potential contract non-renewal without the classification as a layoff.
While 2024 marked a grim record for global gaming industry layoffs, Japan has largely avoided the most severe impacts. The industry's future trajectory will reveal whether Japan's approach can continue to protect its workforce amidst increasing global economic pressures.
