Soulstice Soars Amidst Industry Downsizing

FromSoftware's recent announcement of increased starting salaries for new graduate hires stands in stark contrast to the widespread layoffs affecting the gaming industry in 2024. This article explores FromSoftware's decision and the broader context of the industry's current challenges.

FromSoftware's Counter-Move: A Significant Salary Increase

An 11.8% Boost to Starting Salaries

While the video game industry grappled with significant job losses in 2024, FromSoftware, the developer behind acclaimed titles like Dark Souls and Elden Ring, implemented a substantial 11.8% increase in starting monthly salaries for new graduate hires. Effective April 2025, these salaries will rise from ¥260,000 to ¥300,000. In a press release dated October 4, 2024, the company emphasized its commitment to a stable and rewarding work environment conducive to game development. This salary increase is a key component of that commitment.

In 2022, FromSoftware faced criticism regarding relatively lower wages compared to other Japanese studios, despite its international success. The reported average annual salary of approximately ¥3.41 million (roughly $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 implementing a 25% salary increase (from ¥235,000 to ¥300,000) by the start of its 2025 fiscal year.

A Divergent Path: Japan's Stability Amidst Western Layoffs

The year 2024 witnessed a dramatic surge in global video game industry layoffs, exceeding 12,000 job cuts. Major companies, including Microsoft, Sega of America, and Ubisoft, implemented substantial reductions despite record profits. This surpasses the 10,500 layoffs of 2023, highlighting a concerning trend. While Western studios often cited economic uncertainty and mergers as reasons for these cuts, Japan's gaming industry presented a contrasting picture.

Japan's comparatively stable employment landscape is largely attributed to robust labor laws and established corporate culture. Unlike the "at-will employment" prevalent in the United States, Japan's worker protections and limitations on unfair dismissal create significant barriers to mass layoffs.

Furthermore, several prominent Japanese companies, including Sega (33% increase in February 2023), Atlus (15% increase), and Koei Tecmo (23% increase), also implemented significant salary increases. Nintendo, despite lower profits in 2022, committed to a 10% pay raise. These actions may be partly in response to Prime Minister Fumio Kishida's push for nationwide wage increases to combat inflation and improve working conditions.

However, this doesn't imply a complete absence of challenges within the Japanese industry. Reports indicate that many Japanese developers endure demanding work schedules, often involving 12-hour days, six days a week. Contract workers remain particularly vulnerable, as contract non-renewal doesn't always count as a layoff.

In conclusion, while 2024 marked a record year for global video game industry layoffs, Japan largely avoided the most severe impacts. The future will reveal whether Japan's approach can continue to protect its workforce amidst escalating global economic pressures.