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Square Enix Sets 70% AI QA Target by 2027 and Confirms Overseas Layoffs in Major Restructuring

The publisher is consolidating overseas operations to centralize development in Japan and projects more than ¥3 billion in annual cost savings.

Overview

  • An investor progress report details a joint project with the University of Tokyo’s Matsuo‑Iwasawa Laboratory to automate 70% of QA and debugging using generative AI by the end of 2027.
  • Square Enix confirmed a “fundamental restructuring” of its North American and European publishing operations that will result in layoffs, with UK reports indicating about 137 roles are at risk and subject to consultation.
  • The restructuring plan includes closing overseas development studios, consolidating development functions in Japan, and globally integrating management of IP formerly overseen abroad.
  • The company said the reorganization aims to strengthen its development structure and marketing, targeting annual savings exceeding ¥3 billion (about $19.6 million).
  • Industry reaction included public criticism from Larian’s publishing director Michael Douse, as coverage noted the AI announcement and layoffs landed on the same day, while other reporting tied the cuts to broader overseas consolidation.