FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent announcement of increased starting salaries for new graduates 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's Counter-Move: Salary Hikes Despite Layoff Trend

FromSoftware Boosts New Graduate Salaries by 11.8%

While 2024 has seen significant job cuts across the video game sector, FromSoftware, the developer behind acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio has implemented a substantial 11.8% increase in starting salaries for new graduate hires.

Beginning April 2025, new graduates will receive a monthly salary of ¥300,000, up from ¥260,000. In a press release dated October 4, 2024, FromSoftware stated that this increase reflects their commitment to a stable and rewarding work environment that fosters employee dedication to game development.

In 2022, FromSoftware faced criticism for relatively lower wages compared to other Japanese 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 cover Tokyo's high cost of living.

This salary adjustment aligns FromSoftware's compensation with industry standards, mirroring similar moves by companies like Capcom, which is raising starting salaries by 25% to ¥300,000 by the start of the 2025 fiscal year.

Western Layoffs Contrast with Japan's Relative Stability

The global gaming industry experienced unprecedented layoffs in 2024, with thousands of job losses at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. The total surpasses 2023's figure of 10,500, and the year isn't over yet. While Western companies cite economic uncertainty and mergers, the situation in Japan differs significantly.

Japan's robust employment landscape is largely due to its strong labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the US, Japan offers greater worker protections, making mass layoffs legally challenging.

Several major Japanese companies, including Sega (33% increase in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%), have also increased salaries, potentially in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation.

However, challenges remain within the Japanese industry. Long working hours, often exceeding 12 hours daily for six days a week, are common, particularly impacting vulnerable contract workers whose contracts might not be renewed without being classified as layoffs.

While 2024 marks a grim record for global gaming layoffs, Japan's relative stability is noteworthy. The future will reveal whether Japan's approach can continue to protect its workforce amidst escalating global economic pressures.