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Square Enix Sets 70% AI QA Target by 2027 as It Restructures Overseas Operations

The company is consolidating Western work into Japan to cut costs by over 3 billion yen a year.

Overview

  • Square Enix launched a joint research project with the University of Tokyo’s Matsuo-Iwasawa Laboratory to develop generative AI tools that handle most QA and debugging.
  • The publisher’s stated goal is to automate 70% of game QA and debugging by the end of 2027 to improve efficiency and establish a competitive edge.
  • On the same day, the company announced a fundamental overhaul of its overseas publishing group, with layoffs reported across Europe and the US in nearly all areas.
  • Internal reports indicate up to about 137–140 roles are at risk in the London office, with total headcount reductions undisclosed and UK roles entering consultation.
  • Investor materials describe closing overseas development studios, consolidating development functions in Japan, reducing publishing divisions from 11 to 4, and targeting annual savings exceeding 3 billion yen.