FromSoftware's recent announcement of increased starting salaries for new graduate hires stands in stark contrast to the widespread layoffs impacting 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 to Industry Layoffs
FromSoftware Boosts Starting Salaries by 11.8%
While 2024 has witnessed significant job cuts across the video game sector, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has implemented a substantial 11.8% increase in starting monthly salaries for new graduate hires. Effective April 2025, these salaries will rise from ¥260,000 to ¥300,000. In a press release dated October 4, 2024, the company stated this increase reflects its commitment to a stable and rewarding work environment conducive to game development.
This move addresses past criticism regarding FromSoftware's relatively lower compensation 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 more closely with industry benchmarks, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000 by the start of the 2025 fiscal year).
Western Layoffs Contrast with Japan's Relative Stability
The global gaming industry experienced a tumultuous 2024, with unprecedented layoffs affecting thousands of employees. Major companies like Microsoft, Sega of America, and Ubisoft implemented significant job cuts despite record profits. The total number of layoffs in 2024 already surpasses 2023's total of 10,500, a stark indicator of the industry's instability. While Western companies often cite economic uncertainty and mergers as reasons for these reductions, the Japanese gaming industry presents a different picture.
Japan's more stable employment landscape is attributed to robust labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the United States, Japan's worker protections and limitations on arbitrary dismissals create significant barriers to mass layoffs.
This stability is further underscored by salary increases at other major Japanese companies. Sega implemented a 33% wage increase in February 2023, followed by similar increases at Atlus (15%) and Koei Tecmo (23%). Even amid lower profits in 2022, Nintendo committed to a 10% pay raise. These actions may be partly in response to Prime Minister Fumio Kishida's national push for wage increases to combat inflation and improve working conditions.
However, the Japanese industry isn't without its own challenges. 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 without technically being classified as layoffs.
While 2024 marked a grim record for global gaming industry layoffs, Japan's relative resilience provides a contrasting perspective. The future will reveal whether Japan's approach can continue to protect its workforce amidst escalating global economic pressures.
