Square Enix is betting big on generative AI. In a new investor presentation, the publisher set a target to automate 70 percent of its QA and debugging work by the end of 2027. The plan arrives the same day employees in the company’s Western business were told to expect layoffs across nearly all departments.
Square Enix outlines the AI push as a joint research effort with the Matsuo-Iwasawa Laboratory at the University of Tokyo. A team of more than ten researchers and engineers is tasked with building “Game QA Automation Technology” that can take on much of the repetitive testing and bug-hunting that happens before and after launch. The stated goal is to improve efficiency and turn QA into a competitive advantage.
What might that look like in practice? Think automated generation of test cases, smarter crash clustering, triage that routes issues to the right teams, and faster regression passes after patches. In theory, these steps speed up certification and shrink the time between patches. In reality, there are hard limits. Generative systems can miss edge-case bugs, hallucinate fixes, or introduce flaky tests if they are not trained and supervised carefully. Studios that scale AI in QA will still need human testers to design scenarios, validate results, and judge whether a “fix” actually preserves the feel of a game.
The timing adds pressure. On November 6, 2025, Square Enix leadership told staff in the US and Europe that restructuring will include layoffs across IT, marketing, publishing, sales, QA, and more. People on the call were told the company hopes to save more than 3 billion yen annually, with some teams in London reportedly put “at risk.” No headcount was disclosed. While the company’s AI plan and the cuts are separate announcements, seeing them land together will heighten concerns about how automation affects real jobs.
Square Enix has been signaling this direction for a while. Earlier this year, president Takashi Kiryu said the company would take an aggressive approach to AI across development and publishing. The new progress report puts numbers on that ambition and sets a two-year runway to prove it out. If Square Enix hits its targets, players could see faster updates and broader multi-platform releases backed by leaner pipelines. If the tech underdelivers, the publisher risks slower schedules, rework, and a hit to trust with both staff and fans.
For now, watch two tracks. First, the research cadence with the University of Tokyo team over the next 24 months. Second, the human story in the US and Europe as restructuring plays out. The best outcome blends smart automation with experienced testers who know how to break games in ways bots do not. Games still live or die on that judgment.
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