FromSoftware's recent announcement of increased starting salaries for new graduate hires 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 Counters Layoff Trend with Salary Increase for New Hires
FromSoftware Raises Starting Salaries by 11.8%
While 2024 has seen significant job cuts across the video game industry, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has taken a different path. Effective April 2025, the company will increase the starting monthly salary for new graduate hires from ¥260,000 to ¥300,000 – a substantial 11.8% increase. In a press release dated October 4, 2024, FromSoftware stated, "At FromSoftware, we strive to make games that convey emotion, create value, and inspire joy. To this end, we are working towards stable income and a rewarding work environment where our employees can apply themselves to development. This increase in base and starting salaries is one implementation of this policy."
This move follows criticism FromSoftware faced in 2022 regarding relatively low wages compared to other Japanese game studios, despite its international success. Previously reported average annual salaries of around ¥3.41 million (approximately $24,500) were noted by some employees as insufficient to meet Tokyo's high cost of living. This salary adjustment brings FromSoftware more in line with industry standards, mirroring similar increases at companies like Capcom, which will raise starting salaries by 25%—from ¥235,000 to ¥300,000—by the beginning of the 2025 fiscal year.
Western Layoffs Contrast with Japan's Relative Stability
2024 has been a turbulent year for the global video game industry, with unprecedented levels of layoffs. Major companies in North America and Europe have cut thousands of jobs, totaling over 12,000 in 2024 alone, exceeding 2023's total of 10,500. Companies like Microsoft, Sega of America, and Ubisoft implemented significant cuts despite record profits. While many Western studios cite economic uncertainty and mergers as reasons, the Japanese gaming industry presents a contrasting picture.
Japan's comparatively stable employment landscape 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 arbitrary terminations create significant barriers to mass layoffs.
This stability is further reinforced by salary increases at several major Japanese companies. Sega implemented a 33% wage increase in February 2023, followed by similar increases at Atlus (15%), Koei Tecmo (23%), and a 10% pay hike at Nintendo in 2022 despite lower profits. These actions likely reflect Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.
However, this doesn't mean the Japanese industry is without its challenges. Reports indicate long working hours, often exceeding 12 hours a day for six days a week, are common, particularly impacting the vulnerability of contract workers whose contracts may not be renewed.
In conclusion, while 2024 has witnessed record-breaking layoffs in the global video game industry, Japan has largely avoided the worst of the cuts. The future will reveal whether Japan's approach can continue to protect its workforce amidst growing global economic pressures.
