Expert Explains Why Japanese Studios Have Fewer Layoffs

Japanese gaming studios are weathering the industry crisis better than Western companies due to compact teams, the absence of massive live-service games, and more modest executive compensation, according to industry expert Amir Satvat.

Japanese gaming studios are navigating the industry crisis better than Western counterparts thanks to small teams, a lack of massive live-service titles, and more moderate executive salaries, industry expert Amir Satvat believes.

Satvat manages the ASGC Games Industry Layoffs Tracker and stated in an interview:

“Japan is a completely different story,” though he acknowledged that the situation there is far from ideal. According to him, Japanese companies more frequently cut foreign contractors to protect their core domestic workforce.

Everyone points to Nintendo, but you can look at Konami or Capcom — employee retention across all these companies exceeds 97%. As I understand it, Japanese teams are usually much smaller and more compact. They did not chase the trend of live-service games or giant blockbuster projects with teams of 500 people. And then there are executive salaries. They still make good money, but it is $2 million to $3 million, not $30 million.

According to his tracker, the industry lost 57,628 jobs between 2022 and 2026. In 2026, 96% of layoffs occurred in North America and Europe. Satvat believes that small teams, moderate executive pay, and specialization can make the industry more resilient.

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