FromSoft Raises Salaries Against Industry Trend of Layoffs

Amidst widespread industry layoffs, FromSoftware bucks the trend by raising starting salaries for new graduate hires. This article explores FromSoftware's decision and the contrasting employment landscapes in the global gaming industry.

FromSoftware's Counter-Move to Industry Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While 2024 has seen significant job cuts in the video game industry, FromSoftware, the developer behind critically acclaimed titles like Dark Souls and Elden Ring, has increased its starting monthly salary for new graduate hires from ¥260,000 to ¥300,000, a substantial 11.8% increase effective April 2025. The company cited a commitment to a stable and rewarding work environment as the reason for this raise.

This move follows previous criticism of FromSoftware's relatively lower pay compared to other Japanese studios, despite its global success. The reported average annual salary of approximately ¥3.41 million previously fell short of meeting Tokyo's high cost of living for some employees.

This salary adjustment aligns FromSoftware with industry standards, mirroring similar increases at companies like Capcom, which is implementing a 25% raise to ¥300,000 by the start of its 2025 fiscal year.

Western Layoffs Contrast with Japan's Stability

The global gaming industry experienced a tumultuous 2024, with over 12,000 layoffs—exceeding 2023's total of 10,500—across major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. While economic uncertainty and mergers were cited as reasons in North America and Europe, Japan has largely avoided this trend.

Japan's stable employment market is attributed to its robust labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan offers stronger worker protections, making mass layoffs legally challenging.

This is reflected in salary increases at several major Japanese companies. Sega implemented a 33% raise in February 2023, followed by similar increases at Atlus (15%) and Koei Tecmo (23%). Even with lower profits in 2022, Nintendo committed to a 10% pay hike. These moves may be partly in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation.

However, challenges remain within the Japanese industry. Long working hours, often exceeding 12 hours a day for six days a week, are common, particularly impacting vulnerable contract workers whose contracts may not be renewed.

While 2024 marked a record year for global gaming layoffs, Japan's contrasting approach offers a potential model for mitigating future job cuts, although the long-term sustainability of this model amidst global economic pressures remains to be seen.