Square Enix Plans to Automate Up to 70% of Game Testing with AI Amid New Layoffs

Square Enix is planning to widely implement AI in the game testing and bug-fixing processes. The company has stated that it aims to automate up to 70% of Quality Assurance (QA) and debugging tasks using generative AI by the end of 2027.

This initiative is being carried out in collaboration with the Matsuo-Iwasawa Laboratory at the University of Tokyo, involving over a dozen specialists, including engineers from Square Enix and researchers from the university. The goal of the project is to enhance the efficiency of game development and establish a competitive edge through the automation of routine tasks.

The use of AI for game testing has been a topic of discussion in the industry for quite some time. Advocates argue that quality checks are repetitive and tedious tasks that AI could perform more efficiently. Critics, however, point out that humans are better at identifying and describing errors and express concern that automation might deprive many professionals of opportunities to engage in more creative and lucrative roles.

Other companies have conducted similar experiments. Last month, it was reported that employees at Electronic Arts were struggling with management’s insistence on using AI across virtually all areas, including QA. A former senior QA specialist from Respawn mentioned that one of the reasons for his resignation, along with the layoffs of around a hundred colleagues last spring, was that AI took over tasks related to gathering and analyzing tester feedback that were previously handled by humans.

Square Enix is keeping up with industry trends: as early as 2022, the head of Xbox Game Studios, Matt Booty, openly expressed his aspirations to create AI testers capable of running thousands of game instances in the cloud to continuously monitor performance. He indicated that this approach could revolutionize the testing process.

In addition to these trends, Square Enix is also undergoing workforce reductions. The company announced a new round of layoffs across its Western divisions, affecting «almost all aspects» of its operations outside of Japan.

During a video call with staff in Europe and the United States, the president of Square Enix, Takashi Kiryu, explained that the company is implementing «structural reforms abroad» to make the business more «efficient and adaptable.» As part of these reforms, there will be a «fundamental reorganization of overseas publishing,» according to what was conveyed to employees.

Details will be revealed later, but it’s already confirmed that some positions will be eliminated, and remaining staff will be expected to work more from the office.

The exact number of layoffs has not been disclosed; however, one employee in London reported that around 140 people at the office received notifications of «risk of redundancy.»

The job cuts will affect personnel in IT, marketing, publishing, sales, QA, business planning, and other departments. Teams within Square Enix Europe, external development studios, brand marketing, and support from Japan will also be impacted.

The company expects to save over 3 billion yen (approximately $19.6 million) annually.

This marks the second consecutive round of layoffs in the American and European divisions of Square Enix. According to employees, Kiryu acknowledged that last year’s overseas restructuring did not achieve the desired outcomes.