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 Boost for New Hires

FromSoftware Raises Starting Salaries by 11.8%

While 2024 has seen significant job cuts across the video game sector, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio recently announced an 11.8% increase in starting salaries for new graduate hires.

Beginning April 2025, new graduate employees will receive a monthly salary of ¥300,000, up from ¥260,000. In a press release dated October 4, 2024, FromSoftware stated that this increase reflects its commitment to a stable and rewarding work environment that fosters employee dedication and game development excellence.

In 2022, FromSoftware faced criticism for comparatively lower salaries than other Japanese studios, despite its international success. Previously reported average annual salaries of around ¥3.41 million (approximately $24,500) were noted by some employees as insufficient to cover Tokyo's high cost of living.

This salary adjustment aligns FromSoftware more closely with industry standards, mirroring similar increases at companies like Capcom, which will raise starting salaries by 25% to ¥300,000 by the start of its 2025 fiscal year.

Western Layoffs Contrast with Japan's Relative Stability

The global video game industry experienced a turbulent 2024, with unprecedented levels of layoffs. Thousands of jobs were cut by major companies undergoing restructuring, primarily in North America and Europe. This contrasts sharply with Japan, which largely avoided this trend.

Over 12,000 game industry employees worldwide lost their jobs in 2024, with companies like Microsoft, Sega of America, and Ubisoft making significant cuts despite record profits. This surpasses 2023's total of 10,500 layoffs. While Western studios cited economic uncertainty and mergers as reasons for the cuts, the Japanese gaming sector adopted a different strategy.

Japan's robust employment landscape is largely attributed to its strong labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections and legal barriers against unfair dismissal limit arbitrary terminations.

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

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

While 2024 marked a grim record for global video game layoffs, Japan largely avoided the worst of the cuts. The industry is watching closely to see if Japan's approach can continue to protect its workforce amidst growing global economic pressures.