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 Increases Starting Salaries by 11.8%
While 2024 has seen significant job cuts in the video game industry, FromSoftware, the creator of acclaimed titles like Dark Souls and Elden Ring, has announced an 11.8% increase in starting monthly salaries for new graduate hires. Beginning April 2025, new graduates will receive ¥300,000 per month, up from ¥260,000. The company cited a commitment to a stable and rewarding work environment as the motivation behind this salary increase.
In 2022, FromSoftware faced criticism for relatively low salaries compared to other Japanese studios. This adjustment aims to align their compensation with industry standards, following similar moves by companies like Capcom, which is also implementing a substantial salary increase for new hires.
A Divergent Path: Western Layoffs vs. Japanese Stability
2024 has witnessed a record number of layoffs in the global video game industry, exceeding 12,000 job losses. Major Western companies like Microsoft, Sega of America, and Ubisoft have implemented significant cuts despite high profits. However, Japan has largely avoided this trend.
This disparity is attributed to Japan's robust labor laws and corporate culture, which provide stronger worker protections compared to the "at-will employment" prevalent in the United States. Legal barriers to mass layoffs and the principle of unfair dismissal help mitigate arbitrary terminations.
Furthermore, several major Japanese game companies, including Sega, Atlus, and Koei Tecmo, have also implemented significant salary increases, reflecting a broader trend of wage growth in the country. This may be partly in response to government initiatives aimed at combating inflation and improving working conditions.
However, the Japanese gaming industry isn't without its challenges. Long working hours remain a concern, particularly for contract workers whose job security is less stable.
In conclusion, while 2024 has been a difficult year for the global gaming industry, Japan's approach, exemplified by FromSoftware's salary increase, offers a stark contrast to the widespread layoffs in the West. The long-term sustainability of this divergence remains to be seen.
