FromSoftware Bucks Trend: Raises Employee Salaries

FromSoftware has declared a rise in entry-level salaries for new graduate recruits, a decision made amidst widespread industry job cuts. Read on to learn more about FromSoftware’s statement and the wave of layoffs impacting the gaming sector in 2024.

FromSoftware Defies Layoff Trend with Salary Hike for New RecruitsStarting Salary for New Recruits at FromSoftware Boosted by 11.8%

While job cuts have been a worrying pattern in the video game business this 2024, FromSoftware, the celebrated developer of Dark Souls and Elden Ring, has countered this pattern. The studio has recently revealed a substantial increase in its starting salary for new graduate recruits.

Effective April 2025, new graduates joining the firm will see their starting monthly pay raised from ¥260,000 to ¥300,000—a significant 11.8% increase. "At FromSoftware, we aim to craft games that convey emotion, generate value, and inspire joy," the company stated in their press release dated October 4, 2024. "To this end, we are striving for stable income and a fulfilling work environment where our employees can dedicate themselves to development. This increase in base and starting salaries is one implementation of this policy."

Back in 2022, the company faced criticism for comparatively low wages compared to other Japanese game studios, despite its global success. The average annual salary at FromSoftware has previously been reported to be approximately ¥3.41 million (approximately $24,500), which, as some employees noted, doesn’t fully cover Tokyo’s high cost of living.

This adjustment is expected to bring FromSoftware’s compensation structure closer to industry norms, following the trend set by companies like Capcom, which will see their entry-level salaries increase by 25%—from ¥235,000 to ¥300,000—by the beginning of the 2025 fiscal year.

Video Game Industry Layoffs Ravage the West, But Japan Stands Strong

2024 has been a turbulent year for the global video game industry, with job losses reaching unprecedented levels. Major firms have cut thousands of positions as part of restructuring efforts. However, despite the widespread reductions in North America and Europe, Japan has largely avoided the trend.

In 2024 alone, over 12,000 game industry workers worldwide were laid off, with companies like Microsoft, Sega of America, and Ubisoft implementing significant cuts despite record profits. The total number of job losses in the global gaming sector has already exceeded 2023’s total of 10,500 employees—and 2024 isn’t even over yet. Yet, while many studios in the West cite economic uncertainty and company mergers for these reductions, Japanese game companies have adopted a different strategy.

Japan’s relatively stable employment environment can be largely attributed to its robust labor laws and the country’s long-standing corporate culture. Unlike the United States, which follows "at-will employment"—which allows companies to dismiss employees for almost any reason—Japan has a system of employee protections. Companies face legal obstacles to mass layoffs, including the principle of unfair dismissal, which limits arbitrary terminations.

Furthermore, like FromSoftware, numerous prominent Japanese firms augmented their entry-level compensation. For example, Sega boosted wages by 33% in February 2023, Atlus and Koei Tecmo elevated salaries by 15% and 23%, respectively, with Sega mirroring this 33% increase in February 2023. Even with reduced earnings in 2022, Nintendo pledged a 10% salary increase for its workforce. This is probably a reaction to Japanese Prime Minister Fumio Kishida's initiative for nationwide salary increases to counter escalating inflation and enhance workplace environments.

That said, this doesn't imply the Japanese industry is devoid of challenges. Per The Verge, many Japanese developers endure strenuous schedules, frequently working 12-hour days, six days a week. Contract employees, especially, are susceptible, as their contracts might not be renewed without technically qualifying as terminations.

While 2024 has established a grim record for video game industry job losses globally, Japan has managed to largely avoid the worst of the reductions. Looking forward, gamers are keen to see whether Japan’s approach to combating widespread job losses can continue to protect its workforce, especially as global economic pressures intensify.