While Western AAA game studios face significant challenges including layoffs and closures, Japanese game publishers are experiencing growth and success. This divergence highlights distinct market dynamics and management strategies within the global gaming industry. Recent trends indicate a robust performance from major Japanese companies, contrasting sharply with the downturn in North America and Europe.
As observed from previous industry reports, Western game studios have endured a series of closures and job cuts, impacting their stability and workforce morale. In contrast, major Japanese publishers continue to expand, with some even encountering labor shortages and increasing employee salaries, marking a notable deviation from the past few years’ struggles in other regions.
Japanese Publishers Maintain Stability Amid Western Declines
Japanese game publishers, unlike their Western counterparts, have largely avoided mass layoffs and studio closures.
“The mass layoffs and studio closures in North America and Europe really have not spilled over to Japan, apart from isolated exceptions,”
stated Japanese analyst Dr. Serkan Toto on his blog, KantanGames. This stability is attributed to effective corporate governance and sustained market demand in Japan.
Increased Salaries and Growth Fuel Success
Several Japanese studios are focusing on growth and are experiencing labor shortages. Companies like FromSoftware have responded by raising their starting salaries by 11%, aiming to attract and retain talent. This approach contrasts with the Western trend of cost-cutting and layoffs.
Major Japanese Studios Achieve Record Share Prices
In February 2025, five out of eight major Japanese studios, including Sony, Nintendo, Konami, Capcom, and Bandai Namco, reported all-time high share prices. Bandai Namco, for example, saw critical acclaim for titles like Elden Ring’s Shadow of the Erdtree and the experimental Nightreign. Capcom’s release of a new Monster Hunter game also contributed to the positive financial performance.
The contrasting fortunes of Japanese and Western game publishers underscore the effectiveness of their respective business strategies and market conditions. Japanese studios’ commitment to quality and employee retention appears to be a pivotal factor in their continued success. For stakeholders and industry observers, these trends highlight the importance of adaptive management and market responsiveness in navigating the evolving global gaming landscape.
