FromSoft Counters Industry Trend with Salary Hikes

FromSoftware Raises Starting Salaries Amidst Industry Layoffs

While the 2024 gaming industry grappled with widespread layoffs, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, announced a significant salary increase for new graduate hires. This move stands in stark contrast to the prevalent trend of job cuts.

FromSoftware's 11.8% Salary Boost

Effective April 2025, starting monthly salaries for new graduate employees will rise from ¥260,000 to ¥300,000. In a press release dated October 4, 2024, FromSoftware stated their commitment to a rewarding work environment that fosters employee growth and contributes to the creation of emotionally resonant and valuable games. This salary increase is a key step in achieving this goal.

The company previously faced criticism for relatively lower compensation compared to other Japanese studios, despite its global success. This adjustment aims to align FromSoftware's compensation with industry benchmarks, mirroring similar increases at companies like Capcom (a 25% increase to ¥300,000).

Japan's Stable Employment Landscape

The global gaming industry experienced over 12,000 layoffs in 2024, impacting major players like Microsoft, Sega of America, and Ubisoft. This surpasses the 2023 total of 10,500. While Western studios cited economic uncertainty and mergers, Japan largely avoided this trend, thanks to robust labor laws and corporate culture. Japan's worker protection laws create significant barriers to mass layoffs.

Other Japanese game companies also implemented salary increases, including Sega (33%), Atlus (15%), and Koei Tecmo (23%). Nintendo also committed to a 10% pay raise. These increases may be a response to Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation.

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

While 2024 witnessed record global layoffs in the gaming industry, Japan's approach offers a contrasting narrative. The future will reveal whether this model can withstand mounting global economic pressures.