Amidst widespread industry layoffs, FromSoftware, celebrated creators of Dark Souls and Elden Ring, has announced a significant salary increase for new graduate hires. This decision stands in stark contrast to the prevailing trend. Let's delve into the details of FromSoftware's announcement and the broader context of the 2024 gaming industry layoffs.
FromSoftware's Counter-Move: A Salary Boost for New Recruits
FromSoftware Raises Starting Salaries by 11.8%
While 2024 has witnessed substantial job cuts across the video game industry, FromSoftware has taken a different path. Beginning April 2025, the company will increase its 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 their commitment to fostering a supportive work environment that values employee contributions and ensures stable incomes. This salary increase directly reflects this commitment.
In 2022, FromSoftware faced criticism for comparatively lower salaries compared to other Japanese game developers, 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 cover Tokyo's high cost of living. This adjustment aims to align FromSoftware's compensation with industry benchmarks, following the lead of companies like Capcom, which is also implementing a 25% salary increase for new graduates (from ¥235,000 to ¥300,000) by the start of the 2025 fiscal year.
The West Struggles, Japan Remains Relatively Stable
2024 has been a turbulent year for the global gaming industry, marked by unprecedented layoffs. Major companies have implemented extensive job cuts as part of restructuring initiatives. However, Japan has largely avoided this trend, in contrast to the significant job losses in North America and Europe.
Over 12,000 gaming industry jobs were lost worldwide in 2024 alone, with companies such as Microsoft, Sega of America, and Ubisoft making substantial reductions despite record profits. This surpasses the 10,500 layoffs in 2023. While many Western studios cite economic uncertainty and mergers as reasons for these cuts, the Japanese gaming sector has adopted a different strategy.
Japan's robust employment landscape is largely attributed to its strong labor laws and established corporate culture. Unlike the United States' "at-will employment" system, Japan's worker protections make mass layoffs legally challenging. Unfair dismissal laws significantly limit arbitrary terminations.
Furthermore, mirroring FromSoftware's actions, many prominent Japanese companies have also increased starting salaries. Sega implemented a 33% wage increase in February 2023, followed by similar increases from Atlus (15%) and Koei Tecmo (23%). Even with lower profits in 2022, Nintendo committed to a 10% pay raise. These moves may be partly in response to Japanese Prime Minister Fumio Kishida's initiative to boost wages nationwide to combat inflation and improve working conditions.
Despite this positive trend, challenges remain within the Japanese gaming industry. Reports from sources like The Verge indicate that many Japanese developers work excessively long hours, often 12-hour days for six days a week. Contract workers remain particularly vulnerable, as contract non-renewal effectively avoids the classification of a layoff.
While 2024 has set a concerning record for global gaming industry layoffs, Japan's relative stability offers a contrasting perspective. The coming months will reveal whether Japan's approach can continue to protect its workforce amidst increasing global economic pressures.
