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FromSoft Raises Salaries Against Industry Trend of Layoffs

Author : Lily Jan 24,2025

FromSoft Raises Salaries Against Industry Trend of LayoffsFromSoftware's recent announcement of increased starting salaries for new graduate hires stands in stark contrast to the widespread layoffs sweeping the gaming industry in 2024. This article delves into FromSoftware's decision and the broader context of industry-wide job cuts.

FromSoftware's Counter-Move: Salary Hikes Amidst Layoffs

FromSoftware Boosts Starting Salaries by 11.8%

While 2024 has seen significant job losses in the video game sector, FromSoftware, the celebrated creator of Dark Souls and Elden Ring, has taken a different path. The studio has implemented a substantial 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. In a press release dated October 4, 2024, FromSoftware stated that this increase reflects its commitment to "stable income and a rewarding work environment" to support its employees' dedication to game development.

FromSoft Raises Salaries Against Industry Trend of LayoffsIn 2022, FromSoftware faced criticism for relatively lower compensation compared to other Japanese studios, despite its international success. The reported average annual salary of ¥3.41 million (approximately $24,500) was noted by some employees as insufficient to cover Tokyo's high cost of living. This salary adjustment aims to align FromSoftware's compensation with industry benchmarks, mirroring similar moves by companies like Capcom, which is increasing starting salaries by 25% to ¥300,000 by the start of the 2025 fiscal year.

A Diverging Path: Western Layoffs vs. Japanese Stability

FromSoft Raises Salaries Against Industry Trend of LayoffsThe global video game industry experienced unprecedented layoffs in 2024, with thousands of job losses at major companies like Microsoft, Sega of America, and Ubisoft, despite record profits. Over 12,000 jobs were cut worldwide, exceeding 2023's total of 10,500. While Western studios often cited economic uncertainty and mergers as reasons, the Japanese gaming industry largely avoided this trend.

Japan's robust employment landscape is largely attributed to its strong labor laws and corporate culture. Unlike the "at-will employment" prevalent in the US, Japan's worker protections and restrictions on unfair dismissal create significant barriers to mass layoffs.

FromSoft Raises Salaries Against Industry Trend of LayoffsFurthermore, many prominent Japanese companies, including Sega (33% increase in February 2023), Atlus (15%), Koei Tecmo (23%), and Nintendo (10%), implemented salary increases, possibly in response to Prime Minister Fumio Kishida's push for nationwide wage hikes to combat inflation and improve working conditions.

However, the Japanese industry isn't without its challenges. Reports indicate long working hours, often exceeding 12 hours daily for six days a week, particularly affecting contract workers whose contracts may not be renewed without technically being classified as layoffs.

FromSoft Raises Salaries Against Industry Trend of LayoffsWhile 2024 marked a grim record for global video game industry layoffs, Japan's contrasting approach offers a potential model. The future will reveal whether this strategy can continue to protect its workforce against mounting global economic pressures.