Will your company follow suit?
The video game industry might make a lot of money, but getting paid fairly working within it has been an ongoing battle for some for quite a long time.
This is doubly so for journalists in the field, who are still coping with terrible freelance rates from major outlets as a matter of course. Retail and restaurant workers have been sounding this alarm for a very long time.
Add in the piles of sexual harassment allegations lodged at companies like Activision Blizzard (ATVI) – Get Activision Blizzard, Inc. Report, Riot Games (TCEHY) , and Ubisoft (UBSFY) , alongside the general #MeToo uprising in the space, and working in games doesn’t look particularly appealing right now.
Just like all companies affected by The Great Resignation, game developers are looking at ways to keep its current workforces and attract new potential employees.
The four-day work week has been one of the approaches some have used, and its been a successful one, especially in indie development circles. But many bigger companies have yet to offer this option, leaning on remote working as an option instead.
Of course, there’s always one good way to tempt employees, and that’s with a nice fat raise. Now, one of gaming’s best-known companies has announced that is exactly what it will be offering.
Ken Ishii/Getty Images for Tokyo Game Show
What Are Capcom’s New Employee Salaries Like?
Founded in 1979 in Japan, Capcom is best known for three of its biggest franchises: Street Fighter, Mega Man, and Resident Evil.
All three continue to bring in big money for Capcom, which reported earnings of $810 million for its 2021 fiscal year.
It also reported a 43.9% gain year over year, no doubt funded in part by all of a brand new Resident Evil series that debuted on Netflix last year, as well as the highly successful release “Resident Evil 7,” the latest installment in the main franchise.
And now, the company has made it clear it intends to invest some of that money into its employees. On March 31, Capcom shared via a press release that it would revise its compensation system with a favorable pay boost for all of its workforce.
“This will consist of an average base salary increase of 30% (includes the portion for pay raises) and the introduction of a bonus system more closely linked to the company’s business performance,” it said.
Capcom also promises a reorganization of its human resources department with “a structure that facilitates communication between management and employees.”
What Does This Mean for the Game Industry?
With all the turbulence in the game industry space over the last few years, Capcom’s announcement is a welcome change and encouraging to hear.
It also gives the publisher a solid edge over its competition that pay less generously, putting pressure on them to consider how to compensate their own employees.
Capcom isn’t the only publisher to funnel big sales back into its employees. Bandai Namco, the publisher behind the recent smash hit “Elden Ring,” also announced a pay raise for its workers back in February, saying the base monthly salary would go from ¥232,000 ($2000 U.S.) to ¥290,000 ($2500 U.S.)
Wages have been rising in other industries as well, according to recent reports from the U.S. Bureau of Labor Statistics. Retail has made its increases loud and clear, with Target (TGT) – Get Target Corporation Report now paying the highest starting wage retail has to offer.
While these two publishers are ahead of the curve on these changes, others will need to follow if they expect to hire the best talent. Otherwise, those people are sure to heed the call of a nicer paycheck and go where the money is.
