FromSoftware Raises Salaries Amid Gaming Industry Layoffs

FromSoftware has revealed plans to boost starting salaries for new graduate hires, a bold move against the backdrop of widespread layoffs in the gaming industry. Discover more about FromSoftware’s decision and the ongoing layoffs impacting the gaming sector in 2024.

FromSoftware Defies Layoff Wave with Salary Boost for New Graduates

FromSoftware Increases Starting Pay for New Hires by 11.8%

In a year marked by significant layoffs across the video game industry in 2024, FromSoftware, the renowned developer of Dark Souls and Elden Ring, is taking a different path. The studio recently announced a notable increase in starting salaries for new graduate hires.

Starting in April 2025, new graduates joining FromSoftware will see their monthly starting salary rise from ¥260,000 to ¥300,000, reflecting an 11.8% increase. "At FromSoftware, we aim to create games that evoke emotion, deliver value, and spark joy," the company stated in its October 4, 2024, press release. "This salary increase is part of our commitment to ensuring stable incomes and a fulfilling work environment where our team can focus on development."

In 2022, FromSoftware faced scrutiny for offering relatively low wages compared to other Japanese game studios, despite its global success. Previously, the company’s average annual salary was reported at approximately ¥3.41 million (about $24,500), which some employees noted was insufficient for Tokyo’s high living costs.

This salary adjustment aligns FromSoftware’s compensation more closely with industry benchmarks, following the lead of companies like Capcom, which will increase starting salaries by 25%—from ¥235,000 to ¥300,000—starting in the 2025 fiscal year.

Global Gaming Industry Faces Layoff Surge, Japan Holds Firm

The global video game industry has faced a turbulent 2024, with layoffs reaching historic highs. Major companies have eliminated thousands of jobs during restructuring efforts. However, while North America and Europe bear the brunt of these cuts, Japan’s gaming industry has largely remained resilient.

In 2024, over 12,000 gaming industry employees worldwide lost their jobs, with companies like Microsoft, Sega of America, and Ubisoft implementing significant reductions despite strong profits. This year’s layoffs have already exceeded 2023’s total of 10,500, with months still remaining. In contrast, Japanese game companies have adopted a different strategy, avoiding widespread layoffs.

Japan’s stability stems largely from its strict labor laws and entrenched corporate culture. Unlike the U.S., where "at-will employment" permits terminations with minimal restrictions, Japan’s legal framework includes protections against unfair dismissal, making mass layoffs challenging for companies.

In addition to FromSoftware, several major Japanese companies have raised starting salaries. For example, Sega increased wages by 33% in February 2023, while Atlus and Koei Tecmo implemented raises of 15% and 23%, respectively. Nintendo, despite lower profits in 2022, committed to a 10% pay increase for its workforce. These moves align with Japan’s Prime Minister Fumio Kishida’s call for wage hikes to combat rising inflation and enhance working conditions.

However, Japan’s gaming industry is not without challenges. According to The Verge, many developers endure long hours, often working 12-hour shifts six days a week. Contract workers face particular vulnerability, as non-renewed contracts effectively serve as layoffs without being officially recorded as such.

While 2024 has marked a grim milestone for global gaming industry layoffs, Japan has largely avoided the worst of the cuts. As global economic pressures intensify, the industry watches closely to see if Japan’s approach to protecting its workforce will hold strong.