Japanese devs aren't facing the same layoff crisis because their executives are paid an order of magnitude less, 'they didn’t get swept up in the live-service t
Japanese game studios have avoided mass layoffs by prioritizing staff retention over executive pay and avoiding bloated live-service projects, industry figures say.
Japanese game developers are experiencing far fewer layoffs than their Western counterparts, according to industry analyst Satvat, who attributes this to structural differences in the market. Satvat argues that traditional Japanese studios like Nintendo, Konami, and Capcom maintain staff retention rates above 97%, even when it requires cutting executive compensation or short-term profits. This contrasts with North American and Western European studios, where layoffs have become widespread amid industry contraction. The approach reflects a long-standing cultural emphasis on stability within Japanese corporate governance.
Satvat highlights that Japanese executives earn significantly less than their Western peers—typically two to three million dollars annually compared to figures approaching 30 million in some cases. This lower compensation structure has allowed companies to prioritize workforce stability over shareholder returns during downturns. Additionally, Japanese studios have largely avoided the live-service trend and the creation of large-scale projects with teams exceeding 500 members, which have contributed to financial strain elsewhere.
Despite these differences, Satvat notes that mass layoffs have still occurred in Japan, though at a far lower scale than in North America or Western Europe. The average salary for Japanese game developers was reported at $37,000 in a 2019 CEDEC survey, significantly lower than figures reported in the U.S. for the same period. This disparity in compensation further underscores the structural differences between the industries.
Looking ahead, Satvat expresses skepticism about the industry’s ability to maintain its current size without further contraction. While new positions are being created, the growth rate barely offsets attrition, and the scale of past expansion is unlikely to return. The ongoing crisis has reshaped expectations, with Satvat suggesting that stabilization—rather than growth—may be the most optimistic outcome in the near term.