Segahas announced plans to give its employees substantial raises. The news fromSegacomes during a time when living costs are on the rise and some competition within the technology sector is tightening its belt by laying off large portions of its workforce.
Sega has had a tumultuous past, but more recently it has enjoyed strong performance by a few key intellectual properties.Sonic Frontiersgreatly exceeded sales expectations, the company announced in a recent financial Q&A with investors. Atlus, now a subsidiary of Sega, has also seen recent success with ports of older entries in its popularPersonaseries. Both companies recently announced additional titles in development for release on various platforms, as well, which should provide reasons for a rosy outlook in years to come.
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In a translated notice, Sega Samy advised investors that Sega Corporation is revising its compensation system. The revision is expected to produce a more comfortable working environment and further strengthen the company’s global competitiveness. Sega plans to increase the average monthly salary of existing employees by approximately 30% (which is twice the typical rate of annual increase), effective July 1. The initial salary for university graduates will also increase by approximately 35%, which should make it easier to attract the brightest young talent. Investor notifications are necessary in publicly traded companies, and shareholders don’t always approve of increased pay. For instance,EA shareholders rejected an executive compensation planin late 2020, despite the company’s strong performance during the pandemic.
Sega’s next major release arrives early next week.Like a Dragon: Ishinhas earned solid reviews, despite being a remake of a game that released in Japan most of a decade ago. Now it will serve as the newest entry in the series typically localized asYakuza. An all-new installment currently is expected to arrive later this year as well, a side story following up on the 2020 releaseYakuza: Like a Dragon. MoreSonicgames are also on the way.
Sega isn’t the only company looking to retain and attract employees by offering improved compensation.Nintendo is giving employees a raiseas well, even as other publishers such as Ubisoft and Electronic Arts look to streamline their operations and announce game cancelations. Economic uncertainty has made it obvious some companies are more prepared to support their employees than others, and the knowledge will likely affect which companies are best able to court new talent when the need arises. In any event, this sounds like a good time for young developers to enter the game development workforce, especially if they happen to live in Japan and can secure a position at Sega.
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