FromSoft Bucks Layoff Trend, Raises Salaries

FromSoftware bucks the trend of widespread video game industry layoffs by significantly raising starting salaries for new graduate hires. This counter-intuitive move, effective April 2025, increases starting monthly pay from ¥260,000 to ¥300,000 – an 11.8% jump. The company cited a commitment to a rewarding work environment and stable income as the driving force behind this decision, contrasting sharply with the substantial job cuts seen elsewhere.

This salary increase follows previous criticism of FromSoftware's relatively low wages compared to other Japanese studios. The adjustment aims to align their compensation with industry standards, mirroring similar increases at companies like Capcom (a 25% rise).

While 2024 witnessed over 12,000 gaming industry layoffs globally – exceeding 2023's total – Japan has largely remained unaffected. This resilience is attributed to stricter labor laws and a different corporate culture compared to the West's "at-will employment" practices. Companies like Sega (33% increase), Atlus (15%), and Koei Tecmo (23%) also implemented salary hikes, potentially in response to government initiatives to combat inflation and improve working conditions.

However, Japan's gaming industry isn't without its challenges. Long working hours and the precarious position of contract workers remain concerns. While Japan has avoided the mass layoffs plaguing the West, the long-term sustainability of this approach amidst global economic uncertainty remains to be seen. The future will reveal whether Japan's strategy can continue to protect its workforce from the pressures impacting the global gaming landscape.