FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent announcement of increased starting salaries 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 current challenges.

FromSoftware's Counter-Trend Salary Increase

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 recently revealed an 11.8% increase in starting monthly salaries for new graduate hires, raising the figure from ¥260,000 to ¥300,000, effective April 2025. In a press release dated October 4, 2024, the company emphasized its commitment to a stable and rewarding work environment conducive to game development. This salary increase reflects that commitment.

In 2022, FromSoftware faced criticism for comparatively lower wages than other Japanese studios, despite its international success. Reported average annual salaries of around ¥3.41 million (approximately $24,500) were noted as insufficient to meet Tokyo's high cost of living. This adjustment aims to align FromSoftware's compensation with industry norms, following the lead of companies like Capcom, which is also implementing a substantial salary increase (25%, from ¥235,000 to ¥300,000) by the start of the 2025 fiscal year.

Western Layoffs Contrast with Japan's Relative Stability

The global gaming industry experienced a turbulent 2024, with unprecedented layoffs affecting thousands of employees. Major players like Microsoft, Sega of America, and Ubisoft implemented significant job cuts despite record profits. The total number of layoffs in 2024 already surpasses 2023's total (10,500), and the year isn't over yet. While Western studios often cite economic uncertainty and mergers as reasons, Japan has largely avoided this trend.

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

Furthermore, many prominent Japanese game companies, mirroring FromSoftware's actions, have increased starting salaries. Sega implemented a 33% increase in February 2023, while Atlus and Koei Tecmo also raised wages significantly (15% and 23%, respectively). Even with lower profits in 2022, Nintendo committed to a 10% pay raise. These moves may be partly in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

However, the Japanese industry isn't without its challenges. Reports indicate long working hours, often exceeding 12 hours daily for six days a week, are common. Contract workers remain particularly vulnerable, facing potential non-renewal without it technically being classified as a layoff.

While 2024 witnessed record-breaking global layoffs in the video game industry, Japan has largely remained unaffected. The industry awaits to see if Japan's approach can continue to protect its workforce against mounting global economic pressures.