FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent announcement of increased starting salaries for new graduate hires stands in stark contrast to the widespread layoffs affecting the video game industry in 2024. This article explores FromSoftware's decision and the broader context of the industry's current challenges.

FromSoftware's Counter-Trend Salary Increase

FromSoftware Boosts New Graduate Salaries by 11.8%

While 2024 has witnessed significant job cuts across the video game industry, FromSoftware, the developer behind critically acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio recently announced an 11.8% increase in starting monthly 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 its commitment to a stable and rewarding work environment that fosters employee dedication to game development. This salary increase is a key component of that commitment.

In 2022, FromSoftware faced criticism for relatively lower salaries compared to other Japanese game 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 cover Tokyo's high cost of living. This adjustment aims to align FromSoftware's compensation with industry benchmarks, mirroring similar moves by companies like Capcom, which is increasing starting salaries by 25% to ¥300,000 by the start of the 2025 fiscal year.

A Tale of Two Industries: West vs. East

2024 has been a turbulent year for the global video game industry, with unprecedented levels of layoffs. Thousands of jobs have been cut by major companies undergoing restructuring, particularly in North America and Europe. However, Japan has largely avoided this trend.

Over 12,000 game industry employees worldwide lost their jobs in 2024 alone, with companies like Microsoft, Sega of America, and Ubisoft making significant cuts despite record profits. This surpasses the 2023 total of 10,500 layoffs, and the year isn't even over. While Western studios cite economic uncertainty and mergers as reasons, the Japanese approach differs significantly.

Japan's robust employment landscape is largely attributed to stringent labor laws and established 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, including Sega (33% wage increase in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%), have also implemented salary increases, possibly in response to Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation and improve working conditions. This contrasts sharply with the situation in the West.

However, challenges remain within the Japanese industry. Long working hours, often exceeding 12 hours a day for six days a week, are common, particularly for contract workers whose contracts may not be renewed without technically being considered a layoff.

While 2024 has seen record-breaking layoffs globally, Japan's gaming industry has largely escaped the worst of the cuts. The future will reveal whether Japan's approach can continue to protect its workforce against mounting global economic pressures.