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

Square Enix, the publisher of popular video game franchises like Final Fantasy, has confirmed layoffs across its U.S. and European divisions. The company plans to leverage generative AI for 70% of its quality assurance (QA) and debugging tasks by the end of 2027. This decision is part of a strategic reorganization aimed at strengthening development structures and integrating marketing globally. The number of layoffs has not been officially disclosed, but sources indicate that about 137 jobs are at risk in London, with further cuts anticipated in the U.S. The shift towards AI has been informed by a partnership with the Matsuo Laboratory at the University of Tokyo, highlighting Square Enix's ongoing investment in advanced technologies. The company had also previously sold off significant game franchises to facilitate development in the blockchain and AI domains. This move mirrors a broader trend in the gaming industry, where other major companies are adopting AI to enhance game development processes amid a backdrop of industry-wide layoffs.

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