The first thing to understand is that the UK is practically in a recession, this mean two quarters of negative growth i.e. the economy has shrunk for half a year. The second thing to understand is that this "credit crunch" is exactly what it says, that it is harder to gain credit at an affordable rate. The third thing to take note of is how the economy is being hindered by the high inflation, high rate of interest and low confidence. Ok... so we know that Jagax is an independent business and that it is not a public company, this first limits it's direct exposure to the economy it is unlikely that short selling will occur on it, which nearly brought down Halifax Bank Of Scotland, HBOS. Cash flow is hardly an issue at this moment for Jagex as they are a successful business and banks abet are cautious will lend to Jagex, if they need the money, if they dont get a loan from the banks they still have sufficient assets to carry on. Ok some of you have mentioned rising costs yes this is true. Inflation and the price of oil have a great deal to do with all of the economy, prices are rising but the are staring to peak and will slowly start to decrease. Other people have mentioned how they are reliant on other companies, this is the case yet if the other company goes "bust" it wont effect Jagex on a huge scale. They will just have to change different suppliers and they wont lose out because of they do not break the contract the supplier does and so they cannot demand money from Jagex. Membership will start to fall but those that were members are most likely to stay and become F2P, Jagex will still gain revenue from people. Jagex is also not just limited to RS, they have other assets like funorb, I think they also own their headquarters. The revenue of RS is through 2 different sources Adverts and membership will probably fall so they earn less that way. Yet adverts are unlikely to decrease their profit as huge corporations will still advertise although they wont spend as much on it. So really Jagex's profit margins go down but they are unlikely to lose money. Depresins talked about a health care fund for Jagex's employees but Jagex is a relatively small company and is unlikely to have one. Jagex is unlikely to fail and it is mostly likely to try and sell some of it's other enterprises cut jobs and slow the amount of updates before it decides to close runescape. It is very likely to collapse in the current economical crisis because of its constant stream of revenue. If Jagex does collapse RS is a high profile venture and will most likely by bought thus meaning it will carry on but in another companies control, in a very extreme case. Anyway if a depression does hit, which is the most likely thing to destabilise Jagex, would RS be the most important thing on your mind? Jagex is not going to collaspe and so RS will still live on. A good indicator to a companys future is whether it is still expanding and if they are still offering jobs as that shows confidence and so is unlikely to collapse.