FromSoftware Raises Starting Salaries Amidst Industry Layoffs

While the gaming industry grapples with widespread layoffs in 2024, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has announced a significant salary increase for new graduate hires. This counter-intuitive move highlights a stark contrast between the Western and Japanese gaming markets.

FromSoftware's 11.8% Salary Boost

Effective April 2025, starting monthly salaries for new graduate hires will jump from ¥260,000 to ¥300,000 – a substantial 11.8% increase. The company cited a commitment to a rewarding work environment and stable income for its employees as the driving force behind this decision. This contrasts with criticism the company faced in 2022 regarding relatively low wages compared to other Japanese studios, particularly considering the global success of its games.

This salary adjustment brings FromSoftware more in line with industry standards, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Western Layoffs vs. Japanese Stability

The global gaming industry experienced a record-breaking number of layoffs in 2024, exceeding 12,000 job cuts. Major Western companies like Microsoft, Sega of America, and Ubisoft implemented massive reductions, despite strong profits. However, Japan largely avoided this trend.

This difference is attributed to Japan's robust labor laws and corporate culture, offering stronger worker protections compared to the "at-will employment" prevalent in the United States. Furthermore, several major Japanese game companies, including Sega (33% increase in 2023), Atlus (15%), and Koei Tecmo (23%), also implemented significant salary increases. Nintendo even committed to a 10% pay hike despite lower profits in 2022. These actions may reflect a national push for improved wages in response to inflation.

However, Japan's gaming industry isn't without its challenges. Long working hours, often exceeding 12 hours a day for six days a week, remain a concern, particularly for contract workers whose contracts may not be renewed.

While 2024 witnessed a dramatic surge in global gaming layoffs, Japan's approach offers a contrasting perspective, showcasing a potentially more stable and supportive environment for its workforce. The long-term sustainability of this model remains to be seen, especially given ongoing global economic uncertainty.