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Team Skull
Aug Member 2008

Team Skull

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Have you researched the relative costs between paying employees in England in comparison to equally qualified staff in China/Asia? The comparison of local taxes, such as Corporation Tax between England and elsewhere? And so forth.

In the long term it is entirely possible that it would be cost effective to shut down the Cambridge offices and relocate them elsewhere.

It's mere speculation, again, to state as if it were a fact that the centre of operations will remain the same.

Hrm...A full-on move from the get-go? Likely not.

BUT

Saaaaay....open up an extension office in China, then after a while liquidate the assets in Cambridge and/or relocate said assets to China? Now THAT sounds more likely. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

29-Mar-2016 10:50:56

Tclcis

Tclcis

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Hrm...A full-on move from the get-go? Likely not.

BUT

Saaaaay....open up an extension office in China, then after a while liquidate the assets in Cambridge and/or relocate said assets to China? Now THAT sounds more likely.

But it really depends on the long term goals of the company that wants to buy Jagex then.

If its a hedge to survive the yuan crash, then its highly unlikely they will stay around long enough to do this. But if chronicle proves successful then it might be worth their while creating another office like you say.

The further we speculate from now in the time domain, the less accurate we can predict with the information at hand.

29-Mar-2016 10:56:29

Stoat King

Stoat King

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The further we speculate from now in the time domain, the less accurate we can predict with the information at hand.

Come on, chinese buyers. Just turn SkyNet on and have done with it.
Some of us are bored.

29-Mar-2016 11:09:41

FiFi LaFeles

FiFi LaFeles

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Firstly we would hope .....

Yes, I should think Jagex HQ are hoping precisely that. It's irrelevant that some shareholders have worked with some Jagex employees. Shareholders want a return on their investment and employee losses would be merely collateral damage. Professional acquaintanceship will not win out over a return on money invested.

Secondly, it is legally difficult .....

Source for saying this is the case in a British/China venture? I might be inclined to agree if Jagex were a multi-billion industry like aviation, or ship-building and so forth. But they are a (comparatively) miniscule company which would have no noticeable impact on the British economy - I can't envision questions being asked in the House of Commons should such an exercise be planned.

Look at the sale of Boots the Chemist to foreign investors, for instance. Soon after the takeover, Boots — which had been based in Nottingham for 161 years — moved its headquarters to **g in Switzerland. And the British workers were out of a job.

So it is entirely and easily possible to shut down parts or all of a bought company and ship it overseas. The precedent has already been set.

Thirdly, Jagex software .....

Is a mess. Yes, that cannot be denied. You, nor I, have any idea of how much it would cost to train a body of competent programmers to learn it. It might be huge, it might be acceptable if looked at in the light of longer term savings achieved though relocating. Again, this is purely speculation as no figures are available to you.
Le Chat Guerrier

Bwian's Towel & Grief Shop

29-Mar-2016 11:13:22

Team Skull
Aug Member 2008

Team Skull

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The thing that's popping back about this whole hedge business...is the sheer uncertainty of just HOW LONG said crash will last for. Just from reading into this, it's been teetering for a long while now, and from looking back st history, recessions typically are not short term (though not nearly as long as a depression).

Hell, the global economy suffered two of the hugest downturns the world has ever seen in the late 20s/early 30s, both of which lasting over a year, with the previous of said two lasting nearly 4. The Great Recession also started in late 2007 and didn't end until mid 2009. In business terms, those are all long term (greater than 1 year).

Given precedent, it looks likely that they're in this for the business long-haul. "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

29-Mar-2016 11:16:34

Tclcis

Tclcis

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Yes but fifi, where do you have any proof that they will ***** over their friends? Its a bit much to assume they will. Plus its not uncommon practice for buyouts to put conditions for the new owners to respect current staff.

So your saying that because its just one company, all laws, regulations and wishes of the government don't apply? Dubious claims indeed.

I didn't say it was a mess. I said that it was in house. Nexus provides a good explanation earlier in this thread. Ill find his reply shortly.

There is a difference between table speculation and speculation based on evidence and experience.

Yes D4 how long is "long term". I don't think it would be all that common for a company of this size to be bought in total and then sold again the same year. It could happen, but I don't think it would be often.
I think for most of the point, we need to ask if its worth speculating so far into the future.
Either they sell Jagex on after some arbitrary amount of time, or they hold onto it and keep it profitable. There's chances for success with Chronicle ($6.5b market or something off the top of my head). There isn't any obvious chances for failure here.

29-Mar-2016 11:43:43

Tclcis

Tclcis

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I would like to point out that the majority of Jagex's software is non-standard and proprietary. While it may be true that RuneScape is written in Java (NXT being C++ based), there is more to the company than just the RuneScape game client. For example, Jagex servers are running a custom Unix based operating system which is proprietary and not publicly available. The website does not run standard server scripting such as PHP, it uses webscript, which again is proprietary and not publicly available. Even with the game client being written in Java/C++, the game itself is developed in RuneScript, only the game engine is done in Java/C++, and again, RuneScript is proprietary and not publicly available.

To lay off all the employees and relocate the entire company to China with their own employees would be a massive undertaking, and would most likely cost more money than they would save on salaries, as they would need to train all the developer teams to work with systems and languages that they have never used before and that have no public documentation.

29-Mar-2016 11:47:01

Stoat King

Stoat King

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If this is what was intended, the answer would be to train a nother parallel team outside England with a view to letting them take over asap.
Hardly without precedent in the world of software. I have been on the receiving end of such tactics and have some amusing anecdotes about how my trickery allowed me sto survive the proposed cull.
I agree about the conditions that oblige to new buyers to respect current staff, but such a thing must be time limited.

29-Mar-2016 11:55:02

Team Skull
Aug Member 2008

Team Skull

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Yes D4 how long is "long term". I don't think it would be all that common for a company of this size to be bought in total and then sold again the same year. It could happen, but I don't think it would be often.

In terms of business, long term is seen as any duration longer than 1 year in terms of strategy/goals/objectives.

A recession, by definition, lasts for at least half of that duration.

Most of the relevant recessions however (such as the two that occurred during the Great Depression and The Great Recession) have lasted longer than 1 year (4 quarters, which is longer than the 2 required for a downturn to be classified as a recession), meaning all of this, in terms of business, is long term investment.

Original message details are unavailable.

I think for most of the point, we need to ask if its worth speculating so far into the future.

If it wasn't, then there wouldn't be much discussion, now would there? "Revenge...is like a rolling stone, which, when a man hath forced up a hill, will return upon him with a greater violence, and break those bones whose sinews gave it motion."- Jeremy Taylor

29-Mar-2016 12:06:42

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