Following the latest reports of layoffs and studio closures happening around the world, there\u2019s been some discussion among Japanese game developers about how industry-wide issues like rising production costs are affecting the domestic scene. While Japan hasn\u2019t seen on-the-spot, mass layoffs happen like the US has, industry professionals seem largely in agreement that this is mostly thanks to labor laws making employee terminations very difficult. On the other hand, downsizing has still been happening, just in \u201cinvisible ways.\u201d <\/p>\n\n\n\n
The topic was prompted by Sega and Mixi game producer Taira Nakamura, who recently commented on his X account<\/a>, \u201cOne reason Japanese companies appear to have fewer instances of layoffs despite facing comparable pressure when it comes to costs is likely due to Japan’s employment regulations. However, the inability to easily dismiss staff is creating a shift towards a policy of not hiring in the first place.\u201d <\/p>\n\n\n\n