FromSoftware has made a bold move by increasing the starting salaries of new graduate hires, a decision that stands in stark contrast to the widespread layoffs affecting the gaming industry in 2024. Delve into FromSoftware's announcement and the broader context of layoffs within the gaming sector.
FromSoftware Counters Layoff Trend with Salary Increase for New Hires
Starting Salary for New Hires at FromSoftware Increased by 11.8%
While the video game industry grapples with significant layoffs in 2024, FromSoftware, the renowned developer behind hits like Dark Souls and Elden Ring, is taking a different path. The studio has announced a notable increase in starting salaries for new graduate hires.
Effective April 2025, new graduates joining FromSoftware will enjoy a starting monthly salary increase from ¥260,000 to ¥300,000, marking an 11.8% rise. "At FromSoftware, we are committed to creating games that evoke emotion, add value, and bring joy," stated the company in their October 4, 2024 press release. "To achieve this, we focus on providing a stable income and a fulfilling work environment where our employees can thrive in development. This salary adjustment is a step towards that goal."
Previously, in 2022, FromSoftware faced scrutiny for offering lower wages compared to other Japanese game studios, despite their international acclaim. Reports indicated an average annual salary of approximately ¥3.41 million (about $24,500), which many felt did not adequately cover Tokyo's high living costs.
This new salary adjustment aligns FromSoftware more closely with industry standards, following in the footsteps of companies like Capcom, which plans to increase starting salaries by 25%—from ¥235,000 to ¥300,000—by the start of the 2025 fiscal year.
Video Game Industry Layoffs Ravage the West, But Japan Stands Strong
The year 2024 has been marked by extensive layoffs within the global video game industry, affecting over 12,000 employees. Major players such as Microsoft, Sega of America, and Ubisoft have executed significant job cuts, despite reporting record profits. The total number of layoffs in the gaming sector has already exceeded the 2023 figure of 10,500, and the year is not yet over. While Western companies attribute these cuts to economic uncertainty and corporate mergers, the situation in Japan presents a different picture.
Japan's robust employment landscape can be credited to its strict labor laws and a corporate culture that values employee stability. Unlike the "at-will employment" system in the U.S., which allows for easy terminations, Japan's laws protect workers against unfair dismissals, making mass layoffs more challenging.
In line with FromSoftware's approach, several major Japanese companies have also raised their starting salaries. Sega, for instance, increased wages by 33% in February 2023, while Atlus and Koei Tecmo raised theirs by 15% and 23%, respectively. Even Nintendo, despite facing lower profits in 2022, committed to a 10% pay hike for its employees. These adjustments align with Japan's Prime Minister Fumio Kishida’s initiative to boost wages nationwide, addressing rising inflation and enhancing working conditions.
However, Japan's gaming industry is not without its challenges. According to The Verge, many developers endure long hours, often working 12-hour shifts for six days a week. Contract workers are particularly vulnerable, as their contracts may not be renewed without being classified as layoffs.
As 2024 sets a somber record for global layoffs in the video game industry, Japan has largely managed to weather the storm. The gaming community will be watching closely to see if Japan's strategy to combat widespread layoffs can continue to protect its workforce amidst increasing global economic pressures.
