The increase, which applies to all full-time employees in Japan, forms part of Sega’s broader strategy to strengthen its global competitiveness and create a more stable working environment amid rising living costs.

In a statement, The Sonic the Hedgehog studio said the change is designed to help staff “work with peace of mind amid recent social changes such as rising prices” and to attract and retain top creative talent across its global studios.

Under the new structure, the starting salary for university graduates will increase from ¥300,000 to ¥330,000 per month (around $2,200 USD), while all other employees will see proportional increases in base pay.

The company will also introduce new frameworks for evaluating and rewarding contributions, ensuring compensation aligns with individual roles and performance.

Sega said it will complement these changes with programmes aimed at improving work-life balance and innovation.

This includes expanding its “Fami+ System”, which supports childcare and eldercare, and its “Job+ System”, which allows employees to pursue approved side projects to foster creativity and new ideas.

This latest rise follows Sega’s historic 30 percent pay increase in 2023, which the company introduced to “stabilise employee income” and improve workplace conditions.

At the time, Sega said the reform aimed to help staff “maximise their potential in a comfortable working environment” and “provide further experiences that move the heart globally”.

The initiative also raised the starting salary for new graduates by 35 percent, a move widely praised within Japan’s gaming industry.

With global competition intensifying across gaming and digital media, the company’s latest move reflects a strategic commitment to long-term talent development and employee wellbeing.