Square Enix heralds in the end days with mass layoffs and a heavier reliance on AI

Every time I mention Square Enix, I am bashing them, so I feel like I need to clarify; I really love Square. I play Final Fantasy XIV every day, Final Fantasy VIII is my favourite game, Kingdom Hearts is a fantastic series, The Last Remnant is an underrated masterpiece, and I could go on.

But when it comes to mobile, they just keep making so many stupid moves.

And now, these bad ideas are spreading even further, thanks to the announcement that Square Enix is shuttering its overseas studios to bring development primarily to Japan. As a result, hundreds of employees in the UK and the USA are being laid off, which would be bad enough. What makes it worse, however, is that part of the reason is AI. 

Square Enix wants to automate around 70% of its QA by the end of 2027 using Generative AI, which is the really bad one that uses probably the same amount of electricity as the whole of Japan does. Hyperbole, perhaps, but it is a huge energy hog, and of course is a factor in these layoffs. 

This is the latest in Squares' attempt to save money. We already had a round of layoffs last year in Western territories, along with Square cancelling projects to be more “selective."

In 2022, they sold off a huge range of studios and IP to Embracer Group, who have its own chequered past. It's been a slow retreat to Japan, which has already cost a lot of games and games, both directly and indirectly.

All of this worries me, not just because AI is not what we want to see grow, but because Square already mistreats its mobile games. I can think of two ongoing mobile games right now; Final Fantasy VII: Ever Crisis (Android/iOS), and Final Fantasy XIV Mobile. Ever Crisis is developed in Japan, so hopefully that is safe.

 XIV Mobile, however, is handled by another studio, Lightspeed, in China, which should be safe. But, how long before Square Enix decides they want everything handled in Japan and shuts that, too?