FromSoftware Raises Starting Salaries Amidst Industry Layoffs

While the gaming industry grapples with widespread layoffs in 2024, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has announced an 11.8% increase in starting salaries for new graduate hires. This significant boost, effective April 2025, raises the monthly starting pay from ¥260,000 to ¥300,000. The company cited a commitment to a rewarding work environment and stable income for its employees as the driving force behind this decision.

This move counters previous criticism regarding FromSoftware's relatively low wages compared to other Japanese studios, particularly in relation to Tokyo's high cost of living. The salary increase aligns FromSoftware more closely with industry standards, mirroring similar actions by companies like Capcom, which is implementing a 25% starting salary increase.

A Stark Contrast: Western Layoffs vs. Japanese Stability

The global gaming industry experienced a record-breaking number of layoffs in 2024, exceeding 12,000 job losses. Major Western companies like Microsoft, Sega of America, and Ubisoft implemented substantial cuts despite strong financial performance. However, Japan has largely avoided this trend, a contrast attributed to stricter labor laws and established corporate culture.

Japan's robust worker protections, including limitations on unfair dismissal, create significant barriers to mass layoffs, unlike the "at-will employment" prevalent in the United States. Furthermore, numerous major Japanese game companies, including Sega, Atlus, and Koei Tecmo, also increased starting salaries in 2023, often exceeding 10%. This trend might be partially influenced by Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation.

Despite this positive trend, challenges remain within the Japanese game development industry. Long working hours and the precarious position of contract workers remain concerns. While contract terminations might not technically count as layoffs, they still impact job security.

In conclusion, while 2024 witnessed unprecedented global gaming layoffs, Japan’s approach, exemplified by FromSoftware’s salary increase, offers a contrasting narrative. The long-term sustainability of this model remains to be seen, especially given the ongoing global economic uncertainty.