Square Enix announces staff redundancies alongside increased use of AI

Square Enix announces staff redundancies alongside increased use of AI

Square Enix president Takashi Kiryu has held a video call with staff outside Japan and announced a “fundamental restructuring of the overseas publishing organization”. Jobs will be cut and those left will be expected to spend more time working in the office. The move is part of a cost-cutting exercise to save 3 billion yen ($19.6 million), although the last attempt at restructuring the company ended up costing the company 9.8 billion yen.

Square Enix has not announced how many people will be let go and said that affected staff will be notified today. VGC are reporting that over 140 people are at risk in the London office, including those working in marketing, QA, and sales.

Alongside this, the company also released a financial statement along with a commentary that stated that they are working with the Matsuo-Iwasawa Laboratory at the University of Tokyo on a project “aimed at improving the efficiency of game development processes through AI technologies”. Their goal is to “automate 70% of QA and debugging tasks in game development by the end of 2027”.

The financial report shows that game sales for the company are down 15% year-on-year but despite this, operating income has increased by 28.8% due to reduced marketing and development costs.

Source: PCGamer / VGC / Finimize

5 Comments

  1. bogisich.thurman

    This news certainly brings a lot of changes for Square Enix. It’s interesting to see how the company is adapting to new technologies like AI while also making tough decisions regarding staffing. Wishing all the best to the team during this transition.

  2. gpfannerstill

    is adapting to the evolving gaming landscape. The increased use of AI could really enhance game development processes, but it also raises questions about job security for creative roles. It’ll be fascinating to see how they balance innovation with maintaining their talented workforce.

  3. storp

    You’re right; AI has the potential to revolutionize game development. It can streamline processes and even personalize player experiences. It’ll be interesting to see how Square Enix balances this technology with their creative storytelling traditions.

  4. nluettgen

    Absolutely, the integration of AI could really enhance creativity in game design as well. It might also allow developers to focus more on storytelling and innovative gameplay, which are essential for engaging players.

  5. estefania.sporer

    I agree! AI has the potential to streamline processes and even inspire new ideas in game development. It will be interesting to see how Square Enix balances technology with the unique artistic vision their games are known for.

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