FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware's recent salary increase for new graduate hires 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-Move to Industry Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While 2024 has seen significant job cuts across the video game sector, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has taken a different path. The studio announced a substantial 11.8% increase in starting salaries for new graduate hires, raising monthly pay from ¥260,000 to ¥300,000, effective April 2025. In their October 4, 2024 press release, FromSoftware emphasized its commitment to a supportive work environment that fosters employee well-being and contributes to the creation of emotionally resonant games. This salary increase is a key component of that commitment.

In 2022, FromSoftware faced criticism regarding relatively lower salaries compared to other Japanese studios, despite its international success. 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 rectify this disparity and align FromSoftware's compensation with industry benchmarks, following the lead of companies like Capcom, which is implementing a 25% starting salary increase (from ¥235,000 to ¥300,000) by the start of the 2025 fiscal year.

Japan's Gaming Industry: A Contrast to Western Trends

The global video game industry experienced unprecedented layoffs in 2024, with major companies shedding thousands of jobs amidst restructuring. North America and Europe were particularly hard hit, while Japan largely avoided this trend. Over 12,000 game industry employees worldwide lost their jobs in 2024 alone, exceeding the 2023 total of 10,500, with companies like Microsoft, Sega of America, and Ubisoft making significant cuts despite record profits. While Western studios often cited economic uncertainty and mergers as reasons for these reductions, the Japanese gaming landscape presented a different picture.

Japan's relatively stable employment environment is 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 legal barriers to mass layoffs, including the principle of unfair dismissal, significantly limit arbitrary terminations.

Furthermore, several major Japanese companies, mirroring FromSoftware's actions, increased starting salaries. Sega's 33% wage increase (February 2023), Atlus's 15%, Koei Tecmo's 23%, and Nintendo's 10% commitment to pay hikes (even amidst lower 2022 profits) illustrate this trend. These moves may reflect Prime Minister Fumio Kishida's national push for increased wages to combat inflation and improve working conditions.

However, this doesn't imply the Japanese industry is without challenges. Reports indicate long working hours, often exceeding 12 hours daily for six days a week, are common. Contract workers, in particular, remain vulnerable to contract non-renewal without the technical classification of a layoff.

Despite the record-breaking global layoffs in 2024, Japan's gaming industry largely avoided significant job cuts. The future will reveal whether Japan's approach can continue to protect its workforce amidst escalating global economic pressures.