FromSoft Bucks Layoff Trend, Raises Salaries

FromSoftware Raises Starting Salaries Amidst Industry Layoffs

While the 2024 gaming industry grappled with widespread layoffs, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, took a different path. The studio announced a substantial 11.8% increase in starting salaries for new graduate hires.

Effective April 2025, new graduates will receive a monthly salary of ¥300,000, up from ¥260,000. In a press release (October 4, 2024), FromSoftware emphasized its commitment to a rewarding work environment that fosters employee growth and contributes to the creation of emotionally resonant games.

This salary adjustment addresses past criticism regarding relatively low compensation compared to other Japanese studios. The move aligns FromSoftware's pay structure more closely with industry standards, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Global Layoffs Contrast with Japan's Stability

The global gaming industry experienced record-breaking layoffs in 2024, exceeding 12,000 job cuts. Major Western companies, including Microsoft, Sega of America, and Ubisoft, implemented significant reductions despite strong profits. This contrasts sharply with the Japanese gaming scene, which largely avoided this trend.

Japan's robust employment protections, stemming from stringent labor laws and corporate culture, contribute to its stability. Unlike the "at-will employment" prevalent in the US, Japanese companies face significant legal hurdles for mass layoffs.

Further illustrating this trend, several prominent Japanese companies implemented salary increases in 2023 and 2024, including Sega (33%), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%). These increases are likely influenced by Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation.

However, the Japanese industry faces challenges. Long working hours remain a concern, particularly for contract workers whose job security is less certain.

While 2024 witnessed unprecedented global gaming layoffs, Japan's different approach offers a contrasting perspective. The long-term sustainability of this model amidst growing global economic pressures remains to be seen.