Amid Layoffs, FromSoft Bucks Trend with Wage Hike

FromSoftware's Bold Move: Salary Hikes Amidst Industry Layoffs

In stark contrast to widespread layoffs sweeping the video game industry in 2024, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has announced a significant salary increase for new graduate hires.

FromSoftware's Counter-Trend Strategy: An 11.8% Salary Boost

Starting April 2025, new graduate hires will receive a monthly salary of ¥300,000, an impressive 11.8% jump from the previous ¥260,000. In a press release dated October 4, 2024, FromSoftware emphasized its commitment to a supportive work environment that fosters employee well-being and contributes to the creation of emotionally resonant and valuable games. This salary increase is a key component of that commitment.

This decision addresses past criticism regarding FromSoftware's comparatively lower salaries compared to other Japanese studios, despite the company's international success. Previous reports indicated an average annual salary of approximately ¥3.41 million (around $24,500), a figure some employees found insufficient for Tokyo's high cost of living. The revised salary structure aims to align FromSoftware's compensation with industry standards, mirroring similar moves by companies like Capcom, which is implementing a 25% salary increase for new graduates.

A Tale of Two Industries: West vs. East

2024 has witnessed a record number of layoffs in the global video game industry, exceeding 12,000 job losses. Major players like Microsoft, Sega of America, and Ubisoft have implemented substantial cuts despite strong financial performance. While Western studios often cite economic uncertainty and mergers as reasons for these reductions, the Japanese gaming sector has largely avoided this trend.

Japan's unique labor laws and corporate culture contribute to its relatively stable employment landscape. Stronger worker protections and limitations on arbitrary dismissals create significant barriers to mass layoffs, unlike the "at-will employment" prevalent in the United States.

This trend of salary increases extends beyond FromSoftware. Sega implemented a 33% wage hike in February 2023, followed by Atlus (15%) and Koei Tecmo (23%). Even amidst lower profits in 2022, Nintendo committed to a 10% pay raise. These actions may be a response to Prime Minister Fumio Kishida's nationwide push for increased wages to combat inflation and improve working conditions.

However, challenges remain within the Japanese industry. Long working hours, often exceeding 12 hours a day for six days a week, are common, especially for contract workers whose employment is precarious.

While 2024 marks a grim milestone for global video game industry layoffs, Japan's relative stability offers a contrasting narrative. The long-term viability of Japan's approach remains to be seen, particularly as global economic pressures intensify.