World economical crisis and RS

[aure22]

Yeah, i'm worried about RS future in this world economical crisis...Will it affect RS too or even end it if it gets worse? :ohnoes:

 

 

 

Hopefully not :pray:

[funnisam]

jagex do not rely on sources such as banks to obtain income. the only reason they may start charging more for members is because of the increasing prices of electricity. however i doubt that from the £3m a month they get from members, that this will happen anytime soon.

 

 

 

answered your question? ^.^

[aure22]

Yeah...i guess.

[Mylez]

jagex do not rely on sources such as banks to obtain income. the only reason they may start charging more for members is because of the increasing prices of electricity. however i doubt that from the £3m a month they get from members, that this will happen anytime soon.

 

 

 

answered your question? ^.^

 

 

 

 

 

MOST businesses in the UK are in the [cabbage] atm.

 

INCLUDING Jagex, they rely on much more than simply the cost of electricity...

 

Supply and demand will directly hit Jagex, there will be less demand for membership as people are buying luxuries less, this includes subscriptions online and such.

 

 

 

So yeah, Jagex are affected slightly, although the implications are minor ;)

[Grogthurk]

jagex is also a private company, meaning they don't have stocks. It will take longer for the effects of today to hit them.

[funnisam]

they have stocks but its only for family and friends to be able to buy. the stock market does not affect them therefore. electricity is increasing slightly, but if people want members then jagex can still afford to run runescape.

[Marksman0010]

Its all because of idiots on Wall Street, Americans like me really do suck at just about everything. If anything it wont be the UK that hurts Jagex it will be the US

[firestrike]

This financial crisis may effect rs more than you all think.

 

 

 

Basically the Jagex Corporation will still maintain business as usual. However what will happen, you will find out of

 

the say 200 000 members (total estimate) many of those be they adults or children the money the are spending on

 

RS will be deemed an unescessary expense. As people start to struggle financially, guess what they give up first.

 

 

 

We will see membership dwindle. As the cost of playing RS is not $5.00 a week. It is also having a computer with internet acess and a working computer etc. (that adds up). We will see Rs recieving a smaller bottom line, being less inclined to hire

 

staff, and less inclined to update and expand the game. Furthermore if less people play on f2p worlds we will see s distinct drop in Rs's money source from advertising. therefore further lowering profits.

 

 

 

What i have described is exagerated, basically assuming a depression. However if we do have a depression, rather than a recession this is a very likely outcome.

[klankaos]

I don't think it'll have any effect at all, unless we honestly go into a full-blown, no-holds-barred depression, and I don't think that's uber-likely at the moment. A recession would barely affect TB@JT at all, because being a private company, they don't have stocks, as said. Therefore, it's only if we all completely bomb out and can't afford anything at all that we would be forced to give up RS in the droves necessary to drown Jagex.

[funnisam]

also known as a recession.

[Sumpta]

Oh my god. The whole world is looking at a recession and an economical crisis, lots of people are knee-deep in debts and financial problems, and you worry about your time-waster/hobby?

 

 

 

Jagex is a company like every other and depending on its viability, economical strength and general management, it will pull through or not. I don't know enough of Jagex's management, but I'll hazard a guess they'll pull through.

 

 

 

But seriously, consider that this recession might hit you far worse than the possible loss of a game.

[aure22]

But seriously, consider that this recession might hit you far worse than the possible loss of a game.

 

 

 

What will be worse than life without RS? :?:

[highlanders]

no moar monni to play the internetz, no moar monyz for RS

 

no moar monniz for da electitricitiez

 

 

 

free foods pls x_x

 

 

 

But anyway, if RS dies it's not a big loss at all. RS hasn't been a good game since a long time.

 

 

 

What will be worse than life without RS?

 

I hope you're being sarcastic. The answer to the question is nothing. Theoritically, if you play RS, your life is already at the worst possible, and once you stop playing it, things can only get better. Hehe :P

[aure22]

But anyway, if RS dies it's not a big loss at all. RS hasn't been a good game since a long time.

 

 

 

Ok, go to some chess forum then, what a heck are YOU doing here, you are certainly lost in "internetz" jungle?! :o

[Mistashia]

Jagex have already been hit, but I can't imagine the fat cats that own it will cancel the game if its a (very -.- ) viable source of income :D

[warren211]

For now, very few accounts will be given up just yet. If the world seriously does go into a crisis where there's an international depression then yeah, most families will deem it an unnecessary expense. There will be some no lifers who will always be on runescape no matter how much money they have, of course. But if the economy continues to go down, then we might see some changes.

[elit9]

I think that even if the world does plunge into an absolutely huge recession, Jagex will fare better than most other companies out there in the world. I'm pretty certain Jagex has no debt at all and large amounts of cash to boot, so frozen credit markets won't impact the supply side too much. I don't think we will see anything major unless things get so bad that a) TONS of people have to cancel p2p, and B) f2p ad revenue drops due to advertisers being unable to pay higher rates.

 

 

 

Adding on to what Sumpta13 said: if we get to a point where even a company like Jagex is getting hammered, I think we'll all have much more important things than RS to worry about. :ohnoes:

[Evil Pig20]

Jagex are actually a very eco friendly company, not sure if this is true but I heard 100% of the electricity used is eco friendly. (wind etc) So the price of that electricity isn't going to raise that much.

[1canadian1]

Nothing will happen to RS..

[craven_range]

they have stocks but its only for family and friends to be able to buy. the stock market does not affect them therefore. electricity is increasing slightly, but if people want members then jagex can still afford to run runescape.

 

 

 

Just so you know, the stock price of a company has no affect on the company.

[funnisam]

i know....

 

 

 

i do economics at college. however shares can be sold to generate revenue, which is related to jagex making money to be able to continue with rs...

[cybergla]

The economic crisis will affect everyone, even JaGex. Although it may not be a public company and does not rely on stocks there is still a risk. JaGex must be storing their money in some bank(I doubt they have a dungeon guarded with helldogs), they might have even taken a loan form some bank. Now if that bank crashes or shuts down, it could spell a lot of trouble for JaGex, possibly a shutdown.

 

im not sure if any of this is correct though

[depresins]

The current financial situation of the world CAN affect Jagex, but we can not be sure without full disclosure of Jagex business practices and financial details..

 

 

 

The recession can easily begin to impact upon Jagex. No company is entirely self sufficient. For example, due to share prices falling, the server hosting companies could be forced to rise their prices. Jagex suddenly has higher expenses, and needs to raise membership prices. Higher price of membership could potentially cause members to "leave" the game, further impacting cash flow. More members leave, even less money coming in, prices begin to rise again, or we lost servers, customer support personnel, updates, etc. We lose those things, even more players leave the game.

 

 

 

Like most companys, Jagex probably have money tied up in term deposits and shares of other companies.

 

 

 

As the shares the company owns begin to drop in price, which by the way, is decided by fellow traders, and NOT by the company past the initial sale, the net worth of investors sinks, causing them to (generally) need to replace the money they have lost. To replace it, they increase the prices of their goods and services. As these things become more expensive, most people need to sell off shares to cover expenses, and they are forced to sell at lower prices, which drives the market even lower. As superannuation companies and banks invest in shares & currency, people can lose their retirment funds, and have their loan interest rates shoot up, which then causes THEM to increase the prices for their goods and services.

 

 

 

"But then the government will just bail these companies out, no?" Well, no. Because sooner or later, with the government spending money it doesn't have, inflation becomes a problem.

 

 

 

I ended up in a bit of a ramble, but it's 3am, and I've been at work since 7am. I'm sure you can extract some useful information from it.

[Yomyth105]

1) Jagex is in england not us

 

 

 

2) Jagex is a private company. its not like its owned by the government

 

 

 

3) The 2 dont relate.

[darthnixon16]

and here was me thinking this would be a thread about if a similar crash happened in rs.

 

 

 

 

 

Jagex being in the UK is relevent as this is a globel issue. However i can't seriously take this as a large suffer. To be honest i could see this benifiting Jagex more. If people have less money the few pound a month for alot of your enterainment on a MMORPG look attactive.

 

 

 

Also whoever it was who talked about prices of computers shame on you! Once a computer is bought and you almost never sell it unless to get a better one. Runescape has never needed next gen graphics or this is barely a issue. Everybody has and uses a computer and internet in todays world and nobody is going sell it as the pros easily outweight the cons.

 

 

 

Finally with a internet business like jagex they are not depended on almost anybodies sucess. They don't need anything manufactered, they don't need godswords manufactered for cheap labour in china for christmas. They don't need to expand and take out massive loans such as to buy new land or masses of contruction teams. This would suggest at worset a lack of monthly updates which seems unlikely due to Jagex new plan to have a big update once a month.

 

 

 

in short : the price of runescape is tiny when compared to everything else and everybody could cut down on alot of other areas. Parents will find is easy to buy runescape subscription for a year than to buy the lastest playstation game or even a few months of WOW.