The gaming industry has seen mass layoffs left and right since the start of 2023, with thousands of video game developers losing their jobs. This has included some of the largest companies in the business including Microsoft, PlayStation, Ubisoft, and more. But amidst all that, Capcom aims to do the exact opposite of mass layoffs and will instead increase the salaries of its current workforce, and offer higher starting salaries for new employees.
Capcom is increasing the starting salaries in Japan by over 25% for new hires, who were previously paid ¥235,000, and will now be paid around ¥300,000 (around $2000) per month. Capcom is increasing the starting salary to invest more in better developers and acquire and retain exceptional talent.
Those who are already working for Capcom and those who join in 2024 will receive a “one-time special payment” which, according to the company’s leadership, is considered an investment into the people who will support Capcom in the future. Along with that, all current employees will get a 5% pay raise as well.
Capcom Raising Salaries Instead Of Having Mass Layoffs
This raises the question, how can Capcom raise salaries like this while the entire industry is cutting costs and opting for mass layoffs? Well, the idea is to address issues facing society while establishing more trust between the company and its employees, giving stakeholders more confidence in Capcom as well.
Capcom has been hitting new highs every year in terms of financial success. The company has achieved its 11th consecutive year of operating income growth as of October 2023. This shows that the typical story of cutting people off to reduce costs isn’t entirely accurate.
Some of Capcom’s very successful recent launches include Street Fighter 6, Resident Evil 4 Remake, and many others. For 2024, the company is going to launch Dragon’s Dogma 2 on March 22.
