FromSoftware Counters Layoff Trend with Salary Increase for New HiresStarting Salary for New Hires at FromSoftware Increased by 11.8%
While layoffs have been a concerning trend in the video game industry this 2024, FromSoftware, the acclaimed developer behind Dark Souls and Elden Ring, has bucked the trend. The studio has recently announced a significant increase in its starting salary for new graduate hires.
Effective April 2025, new graduates joining the company will see their starting monthly pay bumped up from ¥260,000 to ¥300,000—a substantial 11.8% increase. "At FromSoftware, we strive to make games that convey emotion, create value, and inspire joy," the company said in their press release dated October 4, 2024. "To this end, we are working towards stable income and a rewarding work environment where our employees can apply themselves to development. This increase in base and starting salaries is one implementation of this policy."
Back in 2022, the company faced criticism for relatively low wages compared to other Japanese game studios, despite its global success. The average annual salary at FromSoftware has previously been reported to be around ~¥3.41 million (around ~$24,500), which, as some employees noted, doesn’t fully meet Tokyo’s high cost of living.
This adjustment is expected to bring FromSoftware’s pay structure closer in line with industry standards, following the trend set by companies like Capcom, which will see their starting 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
In 2024 alone, over 12,000 game industry employees worldwide were laid off, with corporations like Microsoft, Sega of America, and Ubisoft implementing massive cuts despite record profits. The total number of layoffs in the global gaming sector has already surpassed 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 organizations have taken a different approach.
Japan’s relatively stable employment landscape can be largely attributed to its stringent labor laws and the country’s long-standing corporate culture. Unlike the United States, which follows "at-will employment"—which allows businesses to dismiss employees for almost any reason—Japan has a system of worker protections. Businesses face legal barriers to mass layoffs, including the principle of unfair dismissal, which limits arbitrary terminations.
With that being uttered, this does not imply the Japanese industry is exempt from its own array of quandaries. According to The Verge, numerous developers in Japan toil arduous hours, frequently investing 12-hour shifts for six days a week. Contract workers, in particular, are susceptible, as their contracts may not be renewed without technically counting as layoffs.
While 2024 has set a grim record for video game industry layoffs globally, Japan has managed to largely avoid the brunt of the cuts. Looking forward, gamers have their eyes set to see whether Japan’s approach to battling widespread layoffs can continue to shield its workforce, especially as global economic pressures mount.
