FromSoftware's Counter-Move: Salary Hikes Amidst Industry Layoffs

While the gaming industry grapples with widespread layoffs in 2024, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has taken a different path. The studio recently announced a substantial increase in starting salaries for new graduate hires.

FromSoftware's 11.8% Starting Salary Boost

Effective April 2025, new graduate hires will receive a monthly salary of ¥300,000, up from ¥260,000 – a significant 11.8% increase. In a press release dated October 4, 2024, FromSoftware stated its commitment to a supportive work environment that fosters employee well-being and contributes to the creation of emotionally resonant and valuable games. This salary increase is a key element of that commitment.

Addressing Past Criticism

In 2022, FromSoftware faced criticism for relatively low wages compared to other Japanese studios, despite its international success. The reported average annual salary of ¥3.41 million (approximately $24,500) was noted by some employees as insufficient to cover Tokyo's high cost of living. This salary adjustment aims to rectify this disparity and align FromSoftware's compensation with industry norms. This follows a similar trend set by Capcom, which is increasing starting salaries by 25%, to ¥300,000, by the beginning of 2025.

East vs. West: A Divergent Path

The global gaming industry experienced a wave of layoffs in 2024, exceeding 12,000 job losses, with major players like Microsoft, Sega of America, and Ubisoft making significant cuts. While Western studios often cite economic uncertainty and mergers as reasons, Japan has largely avoided this trend.

Japan's Resistance to Layoffs

Japan's robust labor laws and established corporate culture offer significant protection against mass layoffs. Unlike the "at-will employment" prevalent in the US, Japan's legal framework safeguards workers against arbitrary dismissals. This, coupled with salary increases at major Japanese companies (including Sega's 33% increase in February 2023, Atlus's 15%, Koei Tecmo's 23%, and Nintendo's 10%), reflects a commitment to employee well-being. These moves may also be in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

Challenges Remain

However, the Japanese industry isn't without its challenges. Long working hours (often 12-hour days, six days a week) remain a concern, particularly for contract workers whose contracts may not be renewed without being technically classified as layoffs.

The Future of Japanese Game Development

While 2024 marked a record year for global gaming layoffs, Japan's approach offers a contrasting perspective. The industry's ability to maintain employment stability amid global economic pressures will be a key area to watch.