Why do Japanese studios suffer fewer layoffs? Because they have smaller teams and don't pay their execs $30m, says one expert

It's been a pretty grim year for video games.

The short version

• "Japan is a completely different ballgame" he says, before acknowledging the region isn't "a utopia".
• He notes how the typical process in Japan, when a studio needs to remove staff from its budget sheet, is to focus on contractors based outside of the country, rather than target local workers "to protect core staff in Japan".
• There's no singular panacea for the problems affecting the game's industry in 2026.

What happened

Perhaps that's why we've seen Capcom continue its victory lap this year with games like Pragmata, Resident Evil Requiem, and Onimusha. Or why Nintendo is consistenly breaking sales records .

Why it matters

Or why we're seeing Koei Tecmo explicitly state it believes in smaller titles to fuel its continued successes.

Summary by Nerd News Network. Read the full article at Eurogamer via the links above and below.