FromSoftware's recent announcement of increased starting salaries 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 Graduate Starting Salaries by 11.8%
While 2024 has witnessed significant job cuts across the video game sector, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has taken a different path. The studio has implemented a substantial 11.8% increase in starting monthly salaries for new graduate hires.
Beginning April 2025, new graduates will receive ¥300,000 per month, up from ¥260,000. In a press release dated October 4, 2024, FromSoftware stated their commitment to fostering a supportive work environment that values employee well-being and contributes to stable income. This salary increase is a direct reflection of that commitment.
In 2022, FromSoftware faced criticism for relatively lower compensation compared to other Japanese game developers, despite its international success. Reported average annual salaries of approximately ¥3.41 million (roughly $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 moves by companies like Capcom, which will increase starting salaries by 25% to ¥300,000 by the start of the 2025 fiscal year.
Western Layoffs Contrast with Japan's Relative Stability
The global gaming 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 the year isn't over yet. While Western studios often cite economic uncertainty and mergers as reasons, the Japanese gaming industry presents a contrasting picture.
Japan's stable employment landscape is largely attributed to its robust labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections create significant legal hurdles for mass layoffs. The principle of unfair dismissal limits arbitrary terminations.
Furthermore, several major 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 initiative to boost wages nationwide to combat inflation and improve working conditions.
However, this doesn't negate challenges within the Japanese industry. Long working hours, often exceeding 12 hours daily for six days a week, remain a concern, particularly for vulnerable contract workers whose contracts may not be renewed.
While 2024 marked a grim record for global gaming layoffs, Japan's comparatively stable employment situation remains noteworthy. The future will reveal whether Japan's approach can continue to protect its workforce amidst growing global economic pressures.
