FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent announcement of a significant salary increase for new graduate hires stands in stark contrast to the widespread layoffs impacting 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 to Industry Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While the video game industry grappled with substantial job cuts in 2024, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, took a different path. The studio revealed an 11.8% increase in starting monthly salaries for new graduate hires, raising the figure from ¥260,000 to ¥300,000, effective April 2025. In a press release dated October 4, 2024, the company stated its commitment to fostering a stable and rewarding work environment to support its employees' contributions to game development. This salary increase is a key element of this policy.

In 2022, FromSoftware faced criticism for comparatively lower salaries than other Japanese game developers, 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 recent adjustment aligns FromSoftware's compensation more closely with industry benchmarks, mirroring similar moves by companies like Capcom, which will increase starting salaries by 25%—from ¥235,000 to ¥300,000—by the start of the 2025 fiscal year.

Western Layoffs Contrast with Japanese Stability

The global video game industry experienced unprecedented layoffs in 2024, with thousands of job losses at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. The total surpasses 2023's figure of 10,500 and is already higher than the 12,000+ reported in 2024 alone. While Western studios often cite economic uncertainty and mergers as reasons, the Japanese gaming sector presents a contrasting picture.

Japan's stable employment environment is largely attributed to robust labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the United States, Japan's worker protections and limitations on unfair dismissal create significant barriers to mass layoffs.

Furthermore, many leading Japanese companies, including Sega (33% increase in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%), implemented salary increases, even amidst lower profits in 2022. These actions may be partly in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

However, the Japanese industry isn't without challenges. Reports indicate long working hours, often exceeding 12 hours daily for six days a week, particularly affecting contract workers whose contracts might not be renewed without technically being classified as layoffs.

While 2024 marked a grim record for global video game industry layoffs, Japan largely avoided the widespread cuts. The industry awaits to see if Japan's approach can continue to protect its workforce against mounting global economic pressures.