Square Enix restructures its operations in the West and centralizes development in Japan
Square Enix bets on artificial intelligence amid job crisis
According to the media how IGN Yes VGCthe figure could exceed 130 redundancies in the UKas well as an unknown number in North America. The workers themselves confirmed their departure on social media, thus adding to the long list of cuts that the video game industry is experiencing in 2025.
In an official statement, the company explained that this is the case reorganizing its operations in North America and Europe with the purpose of “strengthen the development structure and consolidate the global marketing strategy”.
“It was an extremely difficult decision,” says Square Enix, which says it took the measure after “careful analysis to ensure the group’s long-term growth.”
The company promises treat affected employees with respect and offer support during the transitionalthough the contrast between his words and his actions did not go unnoticed by either the fans or the workers themselves.
Artificial intelligence in video games
During the same presentation to investors, the Japanese studio confirmed its intention to do so close development studios abroad Yes move production to Japanas part of what it calls its “Structural Reform Abroad”. This measure involves a recentralization of creative and technical control in its country of origin, integrating the management of intellectual properties that were previously entrusted to Western teams.
In parallel, Square Enix has made its commitment to artificial intelligence clearfield in which he has been investing for years. Its CEO, Takashi Kiryuas early as 2024, it stated that the company would be “aggressive” in adopting artificial intelligence to optimize development processes. Now, that plan is specified in a goal: automate 70% of QA (quality assurance) and debugging tasks by 2027.
A movement that arouses controversy
While AI promises to reduce costs and speed up time, The announcement provoked a strong reaction among workers and the gaming community. Many see it as perfect symbol of the current tension between technological innovation and job precariousness.
The use of artificial intelligence in video games is not new: studies such as Ubisoft or Nexon They are already experimenting with automation and content generation tools, but Square Enix’s case stands out for this range and speed. At a time when the industry is going through more than 10,000 layoffs so far this yearthe news reinforces the debate about how big companies use technology reduce human costs.
Industry experts warn this Delegating debugging and QA to AI can lead to unexpected problemsespecially in large titles. “Human testers detect unpredictable behavior, bugs related to gameplay or narrative, something that machines cannot yet accurately evaluate,” explains a former member of the company’s QA team.
Japan as a new (old) hub
Strategic change also aims to greater centralization in Japanwhere Square Enix means concentrate your talent and resources for future productions. While this can improve internal communication and creative coherence, it also means a significant loss of diversity and global vision in their projects.
Popular sagas affected by this change include Final fantasy, Kingdom of Hearts, Dragon Quest Yes NieR. In many of these projects, Western teams played a crucial role in localization, artistic design and community communication.
An uncertain future between humans and algorithms
The contrast between technological progress and workforce reduction raises an inevitable question: Is the future of video gaming dooming its own creators?
Square Enix ensures that artificial intelligence it will not completely replace manbut it will serve to “increase efficiency and reduce errors”. But with more than a hundred layoffs and automation on the horizon, it’s hard not to feel like change is closer than many imagined.
The gaming community, meanwhile, is divided between amazement and indignation. For a company that has marked generations with its human and emotional narrative, It is paradoxical that the greatest change in its history is brought about by a machine.
