TOKYO >> Major Japanese video game companies are stepping up their efforts to recruit personnel, as ever more sophisticated graphics mean that more staff are required for game development.

The country’s video game industry is facing labor shortages as companies face stiffer competition from foreign rivals. Also growing in number are solo creators developing indie games on a low budget. Companies are addressing the shortage by raising wages and seeking out talent through game development competitions.

Testing new talent

Capcom Co. is set to host a game development contest, a first for the company, mainly targeting Japan’s university students. Teams of up to 20 will develop a game over six months, with the support of professional game developers.

The company will release the system it used to develop recent installments of its popular “Monster Hunter” and “Resident Evil” game series. Participants can create games with the system, using their own computers. If Capcom finds a game with commercial potential, it might provide support to the team who developed it.

“We would like to nurture as many people as possible to become involved in the game industry,” said a Capcom spokesperson.

Sega Corp. is hosting a contest for its music arcade game “Chunithm,” in which contestants create music to match characters in the game. The winning composition will be used in the game.

Tackle labor shortages

Companies are expediting their efforts to find new talent as the global video game market continues to grow.

PwC Consulting LLC estimates the market grew to $246.9 billion in 2024, up 8.5% from the previous year, and further growth is expected.

As hardware evolves, the technology for graphics is also advancing, making it essential to hire people with specialized skills who can create dynamic images.

Companies are also boosting wages to gain a competitive edge in drawing talented personnel.

Nintendo Co. uniformly raised the base salary of its employees by 10% in 2023. Sega increased the annual salary of its full-time employees by an average of 15%. Capcom will raise its starting salaries by about 30% for those entering the company in April, to a monthly salary of 300,000 yen (about $1,940).

Last year, the Computer Entertainment Supplier’s Association said the average annual salary of workers in the video game and related industries was 7.08 million yen (about $45,925). That was about 50% higher than the average salary across all industries of 4.58 million yen (about $29,708).