Sega dropped a big announcement on November 12, 2025, that’s got the Japanese gaming industry talking. Starting April 1, 2026, the company will raise base salaries for all full-time employees in Japan by an average of 10 percent. New university graduates joining the company will see their starting monthly salary jump from 300,000 yen to 330,000 yen, roughly $2,140 USD. This marks Sega’s second major wage increase in just three years.
Breaking Down the Numbers
The 10 percent base salary increase affects all existing full-time employees working at Sega’s Japanese subsidiary. To put that in perspective, someone earning 4 million yen annually would see their base pay jump to 4.4 million yen, an increase of 400,000 yen per year before accounting for any bonuses or other compensation.
For new graduates, the starting salary bump from 300,000 to 330,000 yen monthly translates to an extra 360,000 yen per year in base pay. At current exchange rates, that’s approximately $2,140 per month or $25,680 annually. While that might sound low compared to tech salaries in the United States, Japan’s cost of living is significantly lower than major American cities, and 330,000 yen represents a competitive wage for fresh graduates in Tokyo.
Sega is implementing this increase through two methods. First, they’re incorporating part of the annual bonus system into base pay, converting variable compensation into guaranteed salary. Second, they’re introducing a more flexible compensation structure based on employee roles rather than strict seniority, allowing the company to reward performance and specialized skills more directly.
Why This Matters Now
Sega’s official statement explains the raise serves two purposes: creating an environment where employees can work with peace of mind amid rising living costs, and strengthening the company’s ability to recruit and develop talent in the face of increasing global competition. That second point hits at something critical happening across Japan’s gaming industry right now.
The Japanese game development sector is fighting a talent war on multiple fronts. International studios are increasingly hiring Japanese developers remotely, offering salaries that dwarf local compensation. Tech companies like Apple, Google, and Amazon have been expanding their Japanese operations, poaching skilled engineers with compensation packages that traditional game studios struggled to match. Even within Japan, competition between gaming giants has intensified as everyone scrambles to secure the best artists, programmers, and designers.
Rising inflation has hit Japan particularly hard over the past few years. The yen weakened significantly against the dollar, sitting around 150 yen per dollar compared to historical averages closer to 100 or 110. This currency depreciation means imported goods cost more, driving up prices for everyday necessities. What used to feel like a comfortable salary suddenly doesn’t stretch as far, forcing companies to adjust wages just to maintain employee purchasing power.
Sega’s Previous Salary Jump
This isn’t Sega’s first rodeo with significant wage increases. Back in July 2023, the company boosted entry-level salaries by a massive 35 percent, jumping from 222,000 yen to 300,000 yen monthly. That increase came after years of stagnant wages and growing criticism about Japanese game industry compensation falling behind other tech sectors.
At the time, 300,000 yen was worth about $2,225 USD due to more favorable exchange rates. Fast forward to late 2025, and that same 300,000 yen only converts to around $1,937 USD because of yen depreciation. The new 330,000 yen starting salary brings the dollar equivalent back up to roughly $2,130, essentially compensating for currency losses while also providing a modest real increase in purchasing power domestically.
Between the 2023 raise and this 2026 increase, new graduates at Sega will have seen their starting monthly pay rise from 222,000 to 330,000 yen over three years. That’s a total increase of 108,000 yen per month, or about 48.6 percent growth in nominal terms. It’s one of the most aggressive wage growth trajectories among major Japanese game publishers.
The Industry Trend Nobody’s Talking About
Sega isn’t alone in this salary push. Nearly every major Japanese game company has announced wage increases over the past two years, creating an unprecedented wave of compensation adjustments across the industry. FromSoftware announced an 11.8 percent base salary increase for enrolled employees starting April 2025, raising new graduate starting salaries from 260,000 to 300,000 yen monthly. The Elden Ring developer faced criticism in 2022 for advertising positions starting at just 220,000 yen, well below industry averages.
Capcom raised starting salaries by 27.6 percent in March 2024, jumping from 235,000 to 300,000 yen for new graduates entering in fiscal year 2025. Current employees received a 5 percent average increase plus a one-time special payment described as an investment in people who support the company’s future. Capcom’s moves came after Monster Hunter World and Resident Evil’s continued success gave the company financial breathing room to invest heavily in talent.
Konami has increased base salaries for four consecutive fiscal years as of 2025, most recently adding 5,000 yen monthly to existing employee pay and raising new graduate salaries from 300,000 to 305,000 yen. Even Nintendo, typically secretive about internal operations, uniformly raised employee base salaries by 10 percent back in 2023, showing that even the most financially stable companies recognize the need to adjust compensation.
The Real Competition
What’s driving this industry-wide wage inflation goes beyond simple cost of living adjustments. Japanese game developers now compete globally for talent in ways that weren’t true a decade ago. Remote work normalized during the pandemic, and many international studios discovered they could hire talented Japanese developers without requiring relocation. These remote positions often pay significantly more than traditional domestic salaries, creating brain drain pressure on local companies.
The average annual salary for workers in Japan’s video game industry reached 7.08 million yen according to the Computer Entertainment Supplier’s Association, about 50 percent higher than the national average of 4.58 million yen across all industries. That premium reflects the specialized skills required and the intense competition for qualified candidates. Even with these increases, game development salaries in Japan still lag behind equivalent positions in the United States, Canada, and parts of Europe.
Tech giants also pose a threat. Software engineers who could build game engines or graphics pipelines are the same engineers that Amazon Web Services, Google Cloud, and Microsoft want for their infrastructure teams. Those companies can offer 10 million to 15 million yen annually for senior positions, plus stock options, international mobility, and better work-life balance. Game studios that want to retain top engineering talent must close that compensation gap or offer something those tech giants can’t match, usually creative freedom or the chance to work on beloved franchises.
What This Means for Game Development
Higher salaries sound great for employees, but they create pressure on project budgets and profitability. Game development costs have exploded over the past decade as visual fidelity expectations increased, live service games demanded ongoing content pipelines, and development teams grew larger. Now add 10 to 30 percent salary increases on top of those rising baseline costs, and you’ve got studios facing difficult decisions about project scope and financial viability.
Some analysts worry these wage pressures will push more Japanese studios toward safer franchise entries and sequels rather than risky new IP. If payroll costs increase 15 percent while revenue remains flat, studios need to either raise game prices, cut team sizes, or focus on proven moneymakers that guarantee returns. We’re already seeing this play out with the prevalence of remakes, remasters, and franchise continuations dominating Japanese publisher lineups.
On the flip side, better compensation attracts better talent, which should theoretically result in higher quality games. If Sega can recruit top graduates who previously would have gone to tech companies or international studios, those developers bring fresh perspectives and stronger technical skills. The investment in human capital pays off when your team ships innovative games that become critical and commercial successes, funding the next generation of development.
Frequently Asked Questions
When does Sega’s salary increase take effect?
The 10 percent base salary increase for existing full-time employees and the raise in starting salaries for new graduates both take effect April 1, 2026. This aligns with Japan’s fiscal year start, which typically begins in April.
How much will new graduates earn at Sega?
Starting April 2026, new university graduates will earn 330,000 yen per month, approximately $2,140 USD at current exchange rates. This is up from the current 300,000 yen monthly starting salary.
Is this increase only for Japanese employees?
Yes, the announced salary revisions apply specifically to full-time employees at Sega’s Japanese subsidiary. International Sega subsidiaries may have separate compensation structures based on local market conditions.
How does this compare to other game companies in Japan?
Sega’s new 330,000 yen starting salary puts it ahead of many competitors. Konami offers 305,000 yen, while FromSoftware and Capcom both recently raised starting salaries to 300,000 yen. Sega now offers one of the highest entry-level salaries among major Japanese game publishers.
Why are Japanese game companies raising salaries now?
Multiple factors are driving wage increases: rising inflation and cost of living in Japan, weakening yen reducing purchasing power, intense competition for skilled developers from tech companies and international studios, and recognition that previous salaries weren’t competitive enough to attract and retain talent.
Will game prices increase because of higher salaries?
Not necessarily. Higher development costs from salary increases are just one factor publishers consider when pricing games. Companies might absorb the costs through efficiency improvements, increased digital sales margins, live service revenue, or DLC sales rather than raising base game prices.
How much do Japanese game developers typically earn?
According to the Computer Entertainment Supplier’s Association, the average annual salary in Japan’s game industry is 7.08 million yen, about $45,700 USD at current rates. This is roughly 50 percent higher than Japan’s national average salary across all industries.
Conclusion
Sega’s decision to raise salaries by 10 percent across the board signals the company recognizes talent is its most valuable asset in an increasingly competitive global market. The move puts Sega ahead of many competitors in terms of starting compensation while addressing the reality that inflation and currency weakness have eroded employee purchasing power over recent years. Whether other Japanese publishers follow with similar increases remains to be seen, but the trend toward higher base salaries shows no signs of slowing down. For developers considering where to start their careers or veterans evaluating whether to stay in game development versus jumping to tech companies, these wage increases make Japanese game studios more competitive options than they were just a few years ago. Sega is betting that investing in people today pays off tomorrow through better games, stronger retention, and a reputation as an employer that values its workforce. Time will tell if that bet pays off, but for the employees receiving those raises, April 2026 can’t come soon enough.