FromSoft Raises Salaries Against Industry Trend of Layoffs

FromSoftware has announced a rise in the starting salaries of new graduate hires, a move that comes amidst industry-wide layoffs. Read on to learn more about FromSoftware’s announcement and the wave of layoffs that has swept the gaming industry in 2024.

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 a dozen game industry employees worldwide were laid off, with companies like Microsoft, Sega of America, and Ubisoft implementing massive cuts despite record profits. The sheer number of layoffs in the global gaming sector has already surpassed 2023’s total of ten 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 taken a unique 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 companies to dismiss employees for almost any reason—Japan has a system of worker protections. Companies face legal barriers to mass layoffs, including the principle of unfair dismissal, which limits arbitrary terminations.

Moreover, akin to FromSoftware, many prominent Japanese companies augmented their starting salaries. For instance, Sega elevated wages by 33% in February 2023, Atlus and Koei Tecmo elevated their wages by 15% and 23%, respectively, while Sega imitated suit with a 33% augmentation in February of 2023. Even amidst diminished profits in 2022, Nintendo committed to a 10% pay hike for its employees. These may most likely be in response to Japan’s Prime Minister Fumio Kishida’s drive for wage hikes across the country to address the rising inflation and enhance working conditions.

With that being said, this does not imply the Japanese industry is exempt from its own set of problems. According to The Verge, many developers in Japan labor arduous hours, frequently putting in 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.