FromSoft Bucks Trend, Raises Salaries Amidst Layoffs

Amidst widespread gaming industry layoffs in 2024, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has announced a significant salary increase for new graduate hires. This counter-intuitive move offers a compelling contrast to the prevailing trend.

FromSoftware's Counter-Move: A Significant Salary Boost

FromSoftware Raises Starting Salaries by 11.8%

While numerous game studios implemented layoffs in 2024, FromSoftware has taken a different path. Starting April 2025, new graduate hires will receive a monthly salary of ¥300,000, representing an 11.8% increase from the previous ¥260,000. In a press release dated October 4, 2024, the company stated its commitment to a supportive work environment that fosters employee growth and contributes to the creation of emotionally resonant and valuable games. This salary increase is a direct reflection of that commitment.

In 2022, FromSoftware faced criticism regarding its relatively lower salaries compared to other Japanese studios, despite its international success. The average annual salary was reportedly around ¥3.41 million, a figure some employees felt insufficient to cover Tokyo's high cost of living. This recent adjustment aims to rectify this disparity and align FromSoftware's compensation with industry benchmarks, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Western Layoffs Contrast with Japan's Relative Stability

2024 witnessed a record number of video game industry layoffs globally, exceeding 12,000 job losses. Major players like Microsoft, Sega of America, and Ubisoft implemented substantial cuts despite strong profits. This contrasts sharply with the Japanese gaming sector, which largely avoided widespread layoffs. While Western studios cited economic uncertainty and mergers as reasons for job cuts, Japan’s approach differs significantly.

Japan's robust employment protection laws and corporate culture contribute to this stability. Unlike the "at-will employment" prevalent in the US, Japan’s legal framework protects workers from arbitrary dismissals. This, coupled with salary increases at several major Japanese game companies (including Sega's 33% increase in February 2023, and similar increases at Atlus, Koei Tecmo, and Nintendo), showcases a different approach to navigating economic challenges.

These Japanese salary increases may be partly attributed to Prime Minister Fumio Kishida's national push for wage growth to combat inflation and enhance working conditions. However, this doesn't negate the existence of challenges within the Japanese industry. Long working hours and the precarious position of contract workers remain concerns.

In conclusion, while 2024 marked a record year for global video game industry layoffs, Japan has largely avoided the most severe impacts. The future will reveal whether this approach can sustain its workforce in the face of growing economic pressures.