FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent salary increase 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: A Salary Increase Amidst Layoffs

FromSoftware Boosts Starting 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 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. In a press release dated October 4, 2024, FromSoftware stated this increase reflects its commitment to a stable and rewarding work environment for its employees.

In 2022, FromSoftware faced criticism for relatively low salaries compared to other Japanese studios, despite its international success. The reported average annual salary of approximately ¥3.41 million (around $24,500) was noted by some employees as insufficient to cover Tokyo's high cost of living. This salary adjustment aims to align FromSoftware's compensation with industry standards, mirroring similar moves by companies like Capcom, which is implementing a 25% salary increase for new graduates.

Western Layoffs Contrast with Japan's Relative Stability

The global gaming industry experienced a tumultuous 2024, with over 12,000 job losses, exceeding 2023's total of 10,500. Major players like Microsoft, Sega of America, and Ubisoft conducted significant layoffs despite record profits. While Western studios often cite economic uncertainty and mergers as reasons, Japan has largely avoided this trend.

Japan's stable employment market is largely attributed to its robust labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections create legal hurdles for mass layoffs.

Many major Japanese game companies, including Sega (33% increase in February 2023), Atlus (15%), and Koei Tecmo (23%), have also implemented salary increases. Nintendo, even amidst lower 2022 profits, committed to a 10% pay hike. These increases may be partly in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

However, Japan's industry isn't without its 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 being classified as layoffs.

Despite the record-breaking global layoffs in 2024, Japan's gaming industry has largely remained unaffected. The future will reveal whether Japan's approach can continue to protect its workforce amidst growing global economic pressures.