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 industry-wide job cuts.

FromSoftware's Counter-Move to Industry Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While 2024 has seen significant job losses in the video game sector, FromSoftware, the developer behind acclaimed titles like Dark Souls and Elden Ring, has implemented an 11.8% increase in starting monthly salaries for new graduate hires. Effective April 2025, the starting salary will rise from ¥260,000 to ¥300,000. In a press release dated October 4, 2024, the company stated this increase reflects its commitment to a stable and rewarding work environment conducive to game development.

This move follows criticism in 2022 regarding relatively lower wages compared to other Japanese studios, despite FromSoftware's international success. Previously reported average annual salaries of approximately ¥3.41 million (around $24,500) were noted by some employees as insufficient to meet Tokyo's high cost of living. This salary adjustment aims to align FromSoftware's compensation with industry benchmarks, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000 by the start of the 2025 fiscal year).

A Divergence: Western Layoffs vs. Japanese Stability

The global gaming industry experienced a turbulent 2024, with unprecedented levels of layoffs. Thousands of jobs were lost at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits in many cases. The total surpasses 2023's figure of 10,500, and the year isn't yet over. While Western companies often cited economic uncertainty and mergers as reasons, the Japanese gaming industry presented a different picture.

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

Furthermore, several major Japanese companies, including Sega (33% increase in February 2023), Atlus (15%), and Koei Tecmo (23%), also implemented salary increases. Even Nintendo, despite lower profits in 2022, committed to a 10% pay hike. These increases may be a response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

However, this doesn't negate challenges within the Japanese industry. Long working hours (often 12-hour days, six days a week) remain a concern, particularly for vulnerable contract workers whose contracts may not be renewed without technically being considered layoffs.

In conclusion, while 2024 set a grim record for global gaming layoffs, Japan largely avoided the worst of the cuts. The future will reveal whether Japan's approach can continue to protect its workforce amidst growing global economic pressures.