Rockstar animation unit opened in India

 @DarkSaber2k correct...you did not ...but i said they were 

 @starjay009  @scorpgul  Just chill people. Indians will take over the world fo' sure. Just a matter of time.

XD

 @torres_unix  Pretty mature answer. Not to be rude or anything, but the so-called "advantage" is already disappearing. Don't know much about China's situation, but India is helluva lot more competitive these days. In every field, mind you.

 @Evilbunz Yeah, and China is not growing as fast as it "should be" because demand for its exports has dried up in America. Same with parts of Europe. Again, you're talking semantics and circular reasoning to distract from the root of the problem. Also, America's financial crisis wouldn't have hit so hard if more Americans still had well paying jobs to afford the homes they had bought back in the early-mid 2000s rather than going to the banks for loans they could never hope to repay when interest rates rose. The corporate gutting of America's (and most western country's) industrial sectors is dragging down developed country standards of living, and eventually the rest of the world's economy with it. Sure, it's nice that some Indian blokes are gonna gets jobs now.. too bad their studio will likely be shuttered in 5 years when there's no longer sufficient demand in the west anymore for pricey luxury products... maybe Rockstar can try selling its games to the pirating Chinese LOL.

 @Evilbunz I respect Krugman a lot - probably the best economist to come out of the US in a generation - but he has become quite political himself in recent years in terms of his columns and his direct advice provided to the current administration... that's not a bad thing, but it means he has a vested interest in defending Mr. Obama and his record vs. the Republicans. So in the run up to this election, a man who usually talks doom and gloom about the world's economic leadership (or lack thereof) in terms of its non-existent implementation of his favoured Keynesian policies is suddenly trying to say things aren't so bad after all. I would take anything Krugman says up to Nov. 6th with a grain of political salt. Once the election is over, he can probably be more honest again.

 @Rufus_the_rat  Sad fact is the world does not revolve around America. The main reason the world economy nosedived is because Europe is having major issues + China is not growing as fast as it should be + American financial crisis. Not because Americans woke up one day and stopped spending.

"As long as outsourcing like this continues...." yeah you are in for a huge surprise then. There is only so much you can try to tell an ignorant person before you give up and just stop bothering with them.

 @Rufus_the_rat Sad fact is people are spending. Don't believe me wait till thanksgiving. Wait till christmas. People are spending more then they did in 08 09 10. 

Also IMF deals in the world economy. They are mainly worried about 2 major things. Europe and China growing at a very slow rate.

Talking about America alone. Here is a source better then your IMF or anyone that works at IMF. An actual nobel winning world renowed economist who is borderline genius. Here is what he had to say about the unemployment rate in America and the politics that came into it for the past week.

http://www.chron.com/opinion/outlook/article/Krugman-Truth-is-the-jobs-picture-is-improving-3929741.php

 @Evilbunz Cough http://www.bbc.co.uk/news/business-19876587 Cough

"The fund also called for further action to address long-term unemployment. 'In advanced economies, growth is now too low to make a substantial dent in unemployment,' it said."

And Rockstar's move here sure isn't helping.

Fact is, in periods of low aggregate demand/unemployment (i.e. depression/recession), normal supply side economics focused on efficiency first don't work. You need to restore aggregate demand through employment-first policies or there's no point in making many goods, cheaply or not, because no one will have money to buy them. Stop hiring Americans like Rockstar is choosing to do here, and the global economy, and with it, the next generation of consoles, are dead in the water. Perhaps one day India can take America's place as the foundation of global demand for (legal) videogames and consoles, but that is a long way away.

 @Rufus_the_rat  You should also realize that because the economy tanked, companies had to look for more efficient alternatives, hence they outsourced. It was pretty big even before the depression, and the grim outlook only helped it further.

Cycles man. They're friggin' endless. Just like pointless conversations about outsourcing. It's gonna happen, whether you like it or not. Best to make peace with it.

 @Evilbunz  @surrealme The main reason the world economy nosedived is because American consumers stopped spending... and along with huge debt rung up by the military industrial complex, most of that has to do with the fact their jobs got outsourced overseas and wages driven down at home. A basic, fundamental concept is that you have to pay your workers enough to buy your products... Henry Ford figured that much out. As long as outsourcing like this continues, unemployment will remain high and consumer demand low in America, and the American and in turn global economy will remain depressed. Rockstar and the whole corporate globalized world is just screwing itself over the long run.

 @Rufus_the_rat  @surrealme Hmmmm S&P 500 has regained about 80% of what was lost in 08. The unemployment rate was about 10% at one point. If you don't think that things have gotten a bit better then before i have no idea what to tell you.

No one is saying this are perfect and fine as they used to be. But they are slowly getting better and have been for some time now. Slowly and slowly... there is a lot more to be done but please don't pretend that things are as bad as they were.

Yes unemployment rate only includes people that are actively searching for a job. But the simple fact is, it didn't drop because people stopped searching but because jobs were actually being created. Have people stopped looking yes, have new jobs been created. Yes a lot of them have. Is it perfect... No a lot needs to be done.

Also "if they're hiring Indians, they're not hiring Americans" is quite possibly the stupidest remark ever. They can just as easily hire Germans, Greeks, Canadians. I don't see Greeks coming in here complaining about how they are taking jobs away from them. Rockstar is a multinational. It started in America but has no allegiance to any nation. It is only the host nation for it.

 @surrealme I know that mate, gamespot's reply system gets wonky at times. ;)

 @Evilbunz  @surrealme You're playing stupid semantics. If they're hiring Indians, they're not hiring Americans. The unemployment rate is misleading, because if you read the jobs report, most of the jobs created were "self-employed" or low paying service jobs. A lot of people have just given up looking for work as well, which isn't counted in that statistic. You really do live/learn in an ivory tower if you think the economy in any western country is improving at the moment.

 @surrealme  @Rufus_the_rat American unemployment rate is at a 4 year low. It has been decreasing for some time slowly but it still is. So i don't see how opening 1 animation studio in India affects anything.

This is not a studio that closed its operations in America where people had jobs and were let go. And then it moved to India. This is a newly created animation studio being opened.

 @Rufus_the_rat I was agreeing with you. My response was really aimed at Evilbunz.

 @surrealme  @Rufus_the_rat Did you read what i wrote or your just another dumb gamer ?

 @megaspiderweb09  @Evilbunz  @Rufus_the_rat Yet these dumb gamers are what drive the games market, be careful of who you insult.

 @Rufus_the_rat I stopped reading at "comparative advantage" "world where capital can move freely". Because everything after that was a conspiracy theory.  

Except for the short term profit i don't agree with anything else. I don't like firms being based on their ability and what they can do now (profit they can generate) only without taking into account what they are capable of doing in the future. But it also depends on the industry itself. Can't put a tin foil hat on and label all firms as the devils and  everything wrong with the world. If you are talking about financial sector, hedge funds, banks etc. Then i agree with you 100%

In this case we are talking about an animation studio. So yeah..... huge difference.

Input costs. labour, wages, lower rent and other overhead costs. lower cost to build and sustain the studio itself with same amount of talent.

 @maximo  @Rufus_the_rat Your argument is simply based on a personal bias. Yes labour cost is cheap but they are not opening up a factory to produce x good. They are opening up an animation studio. Very big difference, not anyone can go and work in an animation studio.

Also it is HRM + management duty to have a corporate culture in place that works makes employees more efficient and productive. IDK what their entire business plan or strategies are in terms of how to better their employees but I am pretty sure they have very brilliant people leading that company and have thought about this decision before they made it.

What you said is simply your opinion about the mind-set of indian people which may or may not be true, but you will agree that there are also many indian people not like that. It is an opinion based on experience as you said. 

And if you were right they would not be opening up an animation studio over there. Which is a talent driven, teamwork oriented industry. 

Please explain to me what these magical "low input costs" are because I know you have no idea what that even means when you read it in your textbook. Also, comparative advantage theory doesn't work in a world where capital can move freely btw. It's mostly all BS invented to justify outsourcing/neo colonialism for short term profit. Once you  complete your brainwashing classes and reflect back on what they taught you and its relationship to reality and history, you'll start to understand this.

 @Evilbunz  @Rufus_the_rat These Dumb gamers dont know anything about world Economics or International Business so dont bother explaining it to their Dumb Shallow Western asses

 @Evilbunz  @Rufus_the_rat

 I want to take exception to your point about improved productivity in India. Based on my experience this is a myth. The bottom line is simple. The labour over there is dirt cheap and thats all their is to it.

Based on my experience, Indians spend most of their time bickering and fighting over job titles and postions in the company than they do actually doing the work. The they fidn out what their western coworkers are making which makes them angry and even more envious which leads to huge reductions in productivity and efficiency.

I am not saying that there is no talent in India but this is not thereason why US and European companies go there. It is because they cost 75% to 80% chepaer than westerners. Its short sighted by these companies.

 @Rufus_the_rat Specialist in financial economics 3rd year at schulich. 

Also what you said reiterates my point. American double standards..... there is more then cheap wages, labour cost is low but so are input costs. Also talent and skill is not something you can measure. But they clearly state top "American" talent is going to move there and recruit top level employees. So you can assume that "American" standards are going to be met.

And yes there will be an increase in productivity and efficiency as a result. Which as a firm you must strive for. CSR is very important too but you do not even have your facts right. American unemployment rate is at a 4 year low at 7.8%.

Your only complaint and argument is "It should be made by Americans". You fail to realize almost everything you consider "American" is not even made in America. But keep complaining, the world is moving towards this trend and it will continue. Oh i learned this concept in Econ 101 called comparative and absolute advantage you should refresh your memory on that again.