FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware has announced an increase in the starting salaries of new graduate hires, a move that comes amidst industry-wide layoffs. Dive deeper into FromSoftware’s initiative and the wave of layoffs that has swept the gaming industry in 2024.

FromSoftware Counters Layoff Trend with Salary Increase for New Hires

Starting Salary for New Hires at FromSoftware Increased by 11.8%

While the video game industry grapples with significant layoffs in 2024, FromSoftware, the renowned developer behind hits like Dark Souls and Elden Ring, is taking a different path. The studio has recently announced a substantial increase in its starting salary for new graduate hires, showcasing a commitment to its workforce amidst challenging times.

Effective April 2025, new graduates joining FromSoftware will see their starting monthly pay rise from ¥260,000 to ¥300,000—an impressive 11.8% increase. "At FromSoftware, we strive to make games that convey emotion, create value, and inspire joy," the company stated in their October 4, 2024 press release. "To achieve this, we are committed to providing stable income and a rewarding work environment where our employees can focus on development. This increase in base and starting salaries is a direct reflection of our policy."

In 2022, FromSoftware faced scrutiny for relatively low wages compared to other Japanese game studios, despite its international acclaim. The average annual salary at FromSoftware was around ¥3.41 million (approximately $24,500), which some employees felt did not adequately address Tokyo's high cost of living.

This salary adjustment aims to align FromSoftware’s compensation more closely with industry standards, following a trend set by peers like Capcom, which is set to increase its starting salaries by 25%—from ¥235,000 to ¥300,000—by the start of the 2025 fiscal year.

Video Game Industry Layoffs Ravage the West, But Japan Stands Strong

2024 has been a challenging year for the global video game industry, with layoffs reaching unprecedented heights. Major companies have cut thousands of jobs during restructuring efforts. However, while North America and Europe face widespread cuts, Japan has largely remained resilient.

In 2024 alone, over 12,000 game industry employees worldwide have been laid off, with giants like Microsoft, Sega of America, and Ubisoft implementing significant reductions despite record profits. The total number of layoffs in the global gaming sector has already exceeded 2023’s figure of 10,500 employees, and the year is not yet over. In contrast, many studios in the West attribute these cuts to economic uncertainty and corporate mergers, Japanese game companies have adopted a different strategy.

Japan's stable employment landscape is bolstered by stringent labor laws and a deep-rooted corporate culture. Unlike the "at-will employment" system in the United States, which allows for dismissals with little reason, Japan’s legal framework, including the principle of unfair dismissal, provides stronger protections against arbitrary terminations.

Moreover, several major Japanese companies have followed FromSoftware's lead by increasing starting salaries. For instance, Sega raised wages by 33% in February 2023, while Atlus and Koei Tecmo implemented increases of 15% and 23%, respectively. Even during a year of lower profits in 2022, Nintendo committed to a 10% pay hike for its employees. These moves align with Japan's Prime Minister Fumio Kishida’s push for wage hikes across the country to combat rising inflation and improve working conditions.

However, the Japanese gaming industry is not without its challenges. According to The Verge, many developers work long hours, often enduring 12-hour shifts for six days a week. Contract workers, in particular, remain vulnerable as their contracts may not be renewed without technically being classified as layoffs.

As 2024 marks a grim record for video game industry layoffs globally, Japan has largely managed to shield its workforce from the brunt of these cuts. Looking ahead, the gaming community is keen to see if Japan’s approach to countering widespread layoffs will continue to protect its workers, especially as global economic pressures intensify.