FromSoft Raises Salaries Against Industry Trend of Layoffs

Amidst widespread industry layoffs, FromSoftware bucks the trend by raising starting salaries for new graduate hires. This article explores FromSoftware's decision and the contrasting situations in the global gaming industry.

FromSoftware's Counter-Move to Industry Layoffs

FromSoftware Increases Starting Salaries by 11.8%

While 2024 has seen significant job cuts in the video game industry, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has announced an 11.8% increase in starting salaries for new graduate hires. Beginning April 2025, new graduates will receive ¥300,000 per month, up from ¥260,000. The company stated in its October 4, 2024 press release that this increase reflects its commitment to employee well-being and a stable work environment conducive to game development.

This move addresses previous criticism regarding FromSoftware's relatively lower compensation compared to other Japanese studios, despite its international success. The company's average annual salary was previously reported around ¥3.41 million, a figure some employees felt insufficient for Tokyo's high cost of living. This adjustment brings FromSoftware more in line with industry standards, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Western Layoffs Contrast with Japan's Stability

2024 has witnessed a record number of layoffs in the global gaming industry, exceeding 12,000 job losses. Major Western companies like Microsoft, Sega of America, and Ubisoft have implemented significant cuts despite strong financial performance. This contrasts sharply with the Japanese gaming market, which has largely avoided widespread layoffs.

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

Furthermore, numerous major Japanese game companies have also implemented salary increases, including Sega (33% in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%). These increases may be a response to Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation and improve working conditions.

However, this doesn't negate 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 marked a record year for global gaming layoffs, Japan's approach offers a contrasting perspective. The future will reveal whether Japan can sustain its resistance to widespread job cuts amidst increasing global economic pressures.