FromSoftware's recent announcement of increased starting salaries for new graduate hires stands in stark contrast to the widespread layoffs affecting 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: Salary Increases Amidst Layoffs
FromSoftware Boosts Starting Salaries by 11.8%
While 2024 has witnessed significant job cuts across the video game sector, FromSoftware, the celebrated developer behind titles like Dark Souls and Elden Ring, has taken a different path. The studio has implemented a substantial 11.8% increase in starting monthly salaries for new graduate hires.
Beginning April 2025, new graduates will receive ¥300,000 per month, up from ¥260,000. In a press release dated October 4, 2024, FromSoftware stated that this increase reflects its commitment to providing a stable and rewarding work environment conducive to game development.
In 2022, FromSoftware faced criticism regarding relatively lower compensation compared to other Japanese studios, despite its international success. The average annual salary was reported to be approximately ¥3.41 million (around $24,500), a figure some employees felt insufficient given Tokyo's high cost of living. This salary adjustment aims to align FromSoftware's compensation with industry benchmarks, following the lead of companies like Capcom, which is implementing a 25% salary increase for new graduates.
A Divergent Path: Western Layoffs vs. Japanese Stability
The global gaming industry experienced unprecedented layoffs in 2024, with major companies shedding thousands of jobs amidst restructuring. North America and Europe bore the brunt of these cuts, while Japan largely avoided this trend.
Over 12,000 game industry employees worldwide lost their jobs in 2024, surpassing the 10,500 figure from 2023. Companies like Microsoft, Sega of America, and Ubisoft implemented significant reductions despite record profits. While Western studios cited economic uncertainty and mergers as reasons, the Japanese gaming landscape presented a contrasting picture.
Japan's robust employment protections, stemming from strict labor laws and established corporate culture, played a key role in mitigating widespread layoffs. Unlike the "at-will employment" prevalent in the United States, Japan's legal framework safeguards workers against arbitrary dismissals.
Further mirroring FromSoftware's actions, many major Japanese game companies increased starting salaries. Sega implemented a 33% increase in February 2023, followed by similar increases from Atlus and Koei Tecmo. Even Nintendo, despite lower profits in 2022, committed to a 10% pay raise. These moves may be partly attributed to Prime Minister Fumio Kishida's initiative to boost wages nationwide to combat inflation and improve working conditions.
However, this doesn't imply a complete absence of challenges within the Japanese industry. Long working hours, often exceeding 12 hours daily for six days a week, remain a concern, particularly for contract workers whose contracts may not be renewed.
While 2024 witnessed a record number of global gaming industry layoffs, Japan largely avoided this trend. The future will reveal whether Japan's approach can continue to protect its workforce against mounting global economic pressures.
