Square Enix is implementing a significant reorganization, resulting in mass layoffs primarily affecting its UK and US operations. Reports indicate that over 100 employees could lose their jobs, with up to 137 positions at risk in the UK alone. This restructuring aims to consolidate development efforts in Japan and streamline its global marketing strategy. The company's recent strategy already included selling major franchises like Crystal Dynamics and Eidos-Montreal to focus on select titles such as Life Is Strange, Outriders, and Just Cause. As part of this transition, Square Enix plans to incorporate generative AI into around 70% of its QA processes by 2027, marking a shift towards more tech-driven development approaches.

What impact will the layoffs have on Square Enix's game development?

The layoffs may significantly affect Square Enix's ongoing projects and overall development capacity, particularly for titles under its Western studios. While the company aims to reshape its focus towards its core franchises in Japan, the reduction in workforce could lead to delays or cancellations of upcoming titles as the organization adjusts to the new structure.

Square Enix is well-known for its iconic franchises, including Final Fantasy and Dragon Quest, but it also has successfully ventured into the Western market with titles like Life Is Strange and Outriders. The current restructuring reflects a broader industry trend as companies reassess their development models in response to market demands and technological advancements.