Final Fantasy Maker Square Enix Confirms Layoffs as AI Takes Over Game Development

Square Enix confirmed layoffs in its U.S. and European divisions, coinciding with plans to increasingly utilize generative AI to handle up to 70% of QA and debugging tasks in game development by 2027. This restructuring aims to strengthen its development and marketing strategy while responding to a global trend of automation in the gaming industry. A source indicated that 137 jobs might be at risk in the London office, with further cuts expected in the U.S. Square Enix has returned more operations to Japan after a past period of expansion and previous layoffs tied to the sale of major franchises. This shift follows an initiative with the University of Tokyo to innovate with generative AI technologies. Square Enix's pivot towards automation aligns with moves by other major players in the sector, as both Electronic Arts and Krafton also announced significant investments in AI-driven game development, reflecting the evolving landscape of the gaming industry.

Source 🔗