Amidst widespread industry layoffs, FromSoftware bucks the trend, announcing a significant salary increase for new graduate hires. This article explores FromSoftware's decision and the contrasting situations in the global gaming industry in 2024.

FromSoftware's Counter-Move to Industry Layoffs: Salary Increase

FromSoftware Raises Starting Salaries for New Graduates by 11.8%

While 2024 witnessed a surge in video game industry layoffs, FromSoftware, the celebrated developer behind titles like Dark Souls and Elden Ring, has taken a different path. The studio recently announced an impressive 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 their commitment to creating a stable and rewarding work environment that fosters employee dedication to game development. This salary increase is a key step in achieving that goal.

In 2022, FromSoftware faced criticism for relatively lower 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 meet Tokyo's high cost of living.

This salary adjustment aligns FromSoftware more closely with industry standards, mirroring similar moves by companies like Capcom, which will increase 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 video game industry experienced unprecedented layoffs in 2024, with major companies shedding thousands of jobs due to restructuring. However, Japan largely avoided this trend, unlike North America and Europe.

Over 12,000 game industry employees worldwide lost their jobs in 2024, with companies such as Microsoft, Sega of America, and Ubisoft implementing massive cuts despite record profits. This surpasses 2023's total of 10,500 layoffs. While Western studios often cited economic uncertainty and mergers as reasons, Japanese companies adopted a different approach.

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

Many major Japanese companies, mirroring FromSoftware's actions, implemented salary increases. Sega increased wages by 33% in February 2023, while Atlus and Koei Tecmo raised wages by 15% and 23%, respectively. Even with lower profits in 2022, Nintendo committed to a 10% pay increase. These moves may be a response to Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation and improve working conditions.

However, the Japanese industry isn't without its challenges. Reports indicate that many Japanese developers work extremely long hours, often 12-hour days, six days a week. Contract workers, in particular, remain vulnerable.

Despite 2024's record-breaking global layoffs, Japan largely avoided the worst of the cuts. The industry will be watching to see if Japan's approach can continue to protect its workforce amidst growing global economic pressures.