FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware has announced an increase in the starting salaries of new graduate hires, a move that comes amidst industry-wide layoffs. Read on to learn more about FromSoftware’s announcement and the wave of layoffs that has swept the gaming industry in two thousand twenty-four.

FromSoftware Counters Layoff Trend with Salary Increase for New HiresStarting Salary for New Hires at FromSoftware Increased by eleven point eight%

While layoffs have been a concerning trend in the video game industry this two thousand twenty-four, FromSoftware, the acclaimed developer behind Dark Souls and Elden Ring, has bucked the trend. The studio has recently announced a significant increase in its starting salary for new graduate hires.

Effective April two thousand twenty-five, new graduates joining the company will see their starting monthly pay bumped up from ¥260,000 to ¥300,000—a substantial eleven point eight% increase. "At FromSoftware, we strive to make games that convey emotion, create value, and inspire joy," the company said in their press release dated October 4, two thousand twenty-four. "To this end, we are working towards stable income and a rewarding work environment where our employees can apply themselves to development. This increase in base and starting salaries is one implementation of this policy."

the renowned company faced criticism for comparatively low wages compared to other Japanese game studios, despite its global success. The average annual salary at FromSoftware has previously been reported to be around ¥3.41 million (around $24,500), which, as some employees noted, doesn’t fully meet Tokyo’s high cost of living.

This adjustment is expected to bring FromSoftware’s pay structure closer in line with current industry standards, following the trend set by companies like Capcom, which will see their starting salaries increase by 25%—from ¥235,000 to ¥300,000—by the beginning of the 2025 fiscal year.

Video Game Industry Layoffs Persist the West, But Japan Stands Strong

2024 has been a tumultuous year for the global video game industry, with layoffs reaching unparalleled levels. Major companies have cut numerous jobs as part of restructuring efforts. However, despite the widespread cuts in North America and Europe, Japan has largely sidestepped the trend.

In 2024 alone, over 12,000 game industry employees worldwide were laid off, with companies like Microsoft, Sega of America, and Ubisoft implementing sweeping cuts despite record profits. The total number of layoffs in the global gaming sector has already surpassed 2023’s total of 10,500 employees—and 2024 isn’t even over yet. Yet, while many studios in the West cite economic uncertainty and company mergers for these reductions, Japanese game companies have taken a different approach.

Japan’s relatively stable employment landscape can be largely attributed to its stringent labor laws and the country’s long-standing corporate culture. Unlike the United States, which follows "at-will employment"—which allows companies to dismiss employees for almost any reason—Japan has a system of worker protections. Companies face legal barriers to mass layoffs, including the principle of unfair dismissal, which limits capricious terminations.

Moreover, similar to FromSoftware, many major Japanese companies increased their starting salaries. For instance, Sega raised wages by 33% in February 2023, Atlus and Koei Tecmo raised their wages by 15% and 23%, respectively, while Sega followed suit with a 33% increase in February of 2023. Even amid lower profits in 2022, Nintendo committed to a 10% pay hike for its employees. These may most likely be in response to Japan’s Prime Minister Fumio Kishida’s push for wage hikes across the country to address the rising inflation and improve working conditions.

With that being said, this does not mean the Japanese industry is free from its own set of problems. According to The Verge, many developers in Japan work grueling hours, often putting in 12-hour shifts for six days a week. Contract workers, in particular, are vulnerable, as their contracts may not be renewed without technically counting as layoffs.

While 2024 has set a grim record for the video game industry's layoffs globally, Japan has managed to largely avoid the heaviest of the cuts. Looking forward, gamers have their eyes set on whether Japan's approach to battling widespread layoffs can continue to shield its workforce, especially as global economic pressures mount.