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 turmoil.

FromSoftware's Counter-Move: Salary Hikes Amidst Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While 2024 has seen 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 announced an 11.8% increase in starting salaries for new graduate hires, raising monthly pay from ¥260,000 to ¥300,000, effective April 2025. In a press release dated October 4, 2024, FromSoftware stated its commitment to a rewarding work environment that fosters employee dedication and stable income. This salary increase reflects this commitment.

In 2022, FromSoftware faced criticism for relatively lower compensation compared to other Japanese studios, despite its international success. The reported average annual salary of approximately ¥3.41 million (around $24,500) was noted by some employees as insufficient to cover Tokyo's high cost of living. This adjustment aims to align FromSoftware's compensation with industry standards, mirroring similar moves by companies like Capcom, which is implementing a 25% salary increase for new graduates.

A Diverging Path: Western Layoffs vs. Japanese Stability

The global video game industry experienced unprecedented layoffs in 2024, with major companies shedding thousands of jobs amidst restructuring. However, Japan largely avoided this trend, unlike North America and Europe. Over 12,000 game industry employees worldwide lost their jobs in 2024, surpassing 2023's total of 10,500. While Western companies cited economic uncertainty and mergers, Japanese companies adopted a contrasting strategy.

Japan's robust employment landscape is attributed to stringent labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections and restrictions on unfair dismissal create significant barriers to mass layoffs.

Following FromSoftware's lead, many major Japanese companies also increased starting salaries. Sega implemented a 33% increase in February 2023, while Atlus and Koei Tecmo raised wages by 15% and 23%, respectively. Even with lower profits in 2022, Nintendo committed to a 10% pay hike. These actions may be partly in response to Prime Minister Fumio Kishida's initiative to combat inflation and improve working conditions through nationwide wage increases.

However, the Japanese industry isn't without challenges. 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 record year for global gaming layoffs, Japan largely escaped the widespread job cuts. The future will reveal whether Japan's approach can continue to protect its workforce against mounting global economic pressures.