Final Fantasy developer Square Enix plans to automate 70% of its QA with AI even as it continues layoffs in the West

Square Enix is pushing to automate 70% of its QA and debugging tasks in game development by the end of 2027, following its announcement of widespread layoffs across its Western offices.

The company explained its new initiative in its latest progress report for its medium-term business plan, “Square Enix Reboots and Awakens,” to address problems such as low sales of games like Final Fantasy XIV.

Square Enix is teaming up with the Matsuo-Iwasawa Laboratory at the University of Tokyo, consisting of a team of researchers from the lab and Square Enix engineers. The end goal is to make QA faster and cheaper.

QA testing traditionally involves manual testing of games for bugs, glitches, and issues, which is exhausting in titles like Final Fantasy and Dragon Quest. Square Enix’s report explicitly stated, “To automate 70% of QA and debugging tasks in game development by the end of 2027.”

This means that an AI debugging system could automatically generate test scenarios, simulate player behavior, and isolate bugs and issues in video games. While similar tools exist in engines like Unreal Engine 5, Square Enix seems determined to take things a step further.

However, this development strategy doesn’t come without sacrifice, as on the very same day Square Enix laid off over 100 employees across its UK, U.S., and European offices, calling it a “fundamental restructuring” of its overseas publishing arm and a “best position for the group’s long-term growth.”

However, the company didn’t explicitly state that the job cuts were linked to the QA AI push. Still, speculation suggests the company could soon replace a significant portion of its testing staff with AI.

Square Enix isn’t the only company leaping into AI, though. A September 2025 survey by CESA asked 54 companies about AI, and 51% confirmed they’re using generative AI for artwork, story concepts, and coding. An additional 31% confirmed they were using AI to build game engines.

Square Enix claims AI will help the company compete in an industry where AAA games are costing exponentially more to develop over the years due to rising licensing, labor, and QA costs as the bar continues to be raised higher. It is important, however, to note that the company itself is doing considerably well financially this quarter, thanks in part to Dragon Quest III HD-2D Remake. 

Despite its enthusiasm, the QA automation push seems like a high-stakes bet for the company, as it risks alienating talent that might be hard to replace should it backfire. Employee morale is already strained at the company, and the coming years will show if Square Enix’s “reboot” will genuinely pay off.

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