Square Enix Confirms Layoffs as AI Takes Over Game Development

Square Enix has announced layoffs across its U.S. and European divisions, coinciding with its strategy to increase the use of generative AI in game development. The publisher aims for AI to handle 70% of quality assurance and debugging tasks by the end of 2027. This move is part of a broader reorganization to strengthen their development structure and global marketing strategy, redirecting more development efforts back to Japan. While the exact number of layoffs has not been disclosed, reports indicate 137 jobs could be at risk in the London office alone. Square Enix has been gradually reducing its workforce following recent high-profile sales and a focus on integrating AI technologies. The company is known for its popular franchises, including Final Fantasy, and has previously explored innovative technologies such as NFTs.

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