FromSoft Bucks Industry Trend with Salary Hikes

Amidst widespread industry layoffs, FromSoftware bucks the trend, raising starting salaries for new graduate hires. This article explores FromSoftware's decision and the broader context of the 2024 gaming industry downturn.

FromSoftware's Counter-Move to Industry Layoffs

FromSoftware Increases Starting Salaries by 11.8%

While 2024 has seen significant job cuts in the video game industry, FromSoftware, renowned for titles like Dark Souls and Elden Ring, has announced an 11.8% increase in starting salaries for new graduate hires. Beginning April 2025, entry-level monthly pay will rise from ¥260,000 to ¥300,000. The company stated in their October 4, 2024 press release that this increase reflects their commitment to a stable and rewarding work environment for employees.

This move contrasts with past criticism FromSoftware faced regarding relatively low wages compared to other Japanese studios, despite its global success. The reported average annual salary of around ¥3.41 million previously fell short of meeting Tokyo's high cost of living. This salary adjustment aligns FromSoftware more closely with industry standards, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Western Layoffs Contrast with Japan's Stability

2024 witnessed a record number of layoffs in the global gaming industry, exceeding 12,000 job losses. Major players like Microsoft, Sega of America, and Ubisoft implemented significant cuts, despite record profits. This contrasts sharply with the Japanese gaming market's relative stability.

Japan's resistance to widespread layoffs is attributed to strong labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan offers stronger worker protections, making mass layoffs legally challenging.

Several major Japanese companies mirrored FromSoftware's move, raising starting salaries. Sega implemented a 33% increase in February 2023, followed by similar increases at Atlus and Koei Tecmo. Even Nintendo, despite lower profits in 2022, committed to a 10% pay raise. These actions may partly respond to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation.

However, this stability doesn't negate existing challenges within the Japanese industry. Long working hours and the precarious position of contract workers remain concerns.

Despite the global gaming industry's record-breaking layoffs in 2024, Japan has largely avoided the worst of the cuts. The industry awaits to see if this approach can sustain its workforce amidst growing global economic pressures.