Indian firm buys half of Codemasters
Has "immense resources", says pub.
British publisher Codemasters is planning to "leapfrog" into the big league after a 50 per cent acquisition by Indian giant Reliance Big Entertainment.
The deal will be overseen by games division Zapak Digital Entertainment and secure the future of Codemasters, which had looked wobbly.
"I think it leapfrogs us forward," Codemasters boss Rod Cousens told GamesIndustry.biz, "and where we've been this high-quality company in England, I think this really propels us on a global stage, and no one can doubt the financial resources behind this company now."
Cousens said Reliance has "immense resources", and that online portal Zapak and Jump Games have huge potential to spur online Codemasters growth. India, too, is a "high-growth" market, fanatical about cricket and soon perhaps formula 1 - two areas Codemasters is familiar with.
That's not to mention India's out-sourcing "potential", Cousens added, nor Reliance's funding-fingers that are dipped in the Dreamworks pie. "That's also something to consider," said Cousens, "and whether there are areas of collaboration.
"But sitting beneath all of that, ironically - and believe me, this was never the lead on the agenda - but titles like Dance Factory, as you look at Bollywood and the TV dance shows... If you then start to look at what we can do through Zapak - plus the Sensible titles we have, such as Cannon Fodder and Megalomania, for us it's just great," Cousens offered.
The Codemasters boss also talked of participation in the social games market and on iPhone and mobile.
Pop over to GamesIndustry.biz for the full Rod Cousens interview.
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Comments (60) Latest comment 2 years ago
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Operation Flashpoint franchise. Now kindly fuck off until you want to make decent games again.
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Just...LOL!
Because outsourcing has proven itself to be such a reliable, quality-focused way of getting work done. Bravo!
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However 'high quality' you think you were in the UK, you can kiss all that quality goodbye if you are seriously considering this as a business strategy.
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Overseer - dig!
Earthmine worker - but why>? Overseer - just dig!! Earthmine worker - But why? its just earth! Overseer - *nods* The reason you dig now, is because you ask why you dig. Dig!!!!
*wow! tough crowd today
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oh for fuck sake.
so that's the plan then? Indian firm buys Codies name and then farms all the fucking dev jobs abroad?
nice.
and it's taken this long to get any movement at all on UK games industry tax breaks...
great.
I wonder how much of the 'UK Games Industry' will be left by the time we have the same level of support that countries like Canada etc enjoy.
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Dirt, Grid, F1 franchises. Now kindly fuck off until you want to make decent posts again.
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"who the fuck wants one of those"
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/works for Reliance.
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"Dirt, Grid, F1 franchises."
*shudder* I still have nightmares about cars that behave like hovercraft after playing GRID.
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That's QA done then. Nice one Rod. I sure hope that this article is not how they first learn about this serious risk to their job security.
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"Dirt, Grid, F1 franchises."
Never played Op Flash 2 did you?
No matter how good you think their racing games are, Op Flash 2 puts them into negative territory.
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You reckon?
Lets see where things sit in a couple of months, shall we? QA will definitely be offloaded to India, as a first action. Not good for their jobs, is it?
Edit: -1? Why? I'm not saying that QA deserve it, just that they are typically the dept that are found 'easiest' to push to outsourcing.
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Yeah, it was SO bad it got a metacritic of 76/100 across all formats.
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Anyway Reliance came along and basically gutted the company, moved alot of the work to India and now the UK office (once the world HQ) is now a shell of it's former self.
Codemasters isn't in the same situation though so things MIGHT be different but if Reliance finds things wrong it will have no qualms about ripping the guts out of codemasters and then shoving it into a global brand.
Say hello to Reliance Codemasters.
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You may whine about outsourcing to India but most of the top computer, programming and coding geeks are there tbh. Not to mention that they'll have a greater drive to work than you lazy first worlders who think you just naturally deserve work, rather than based on your skills! Free market, they'll go where the labour is best, but good news.
I demand some Mahabharat or Ramayana title!
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Outsourcing things like art assets certainly does make sense, they eat up a lot of developer time that can be used for things like level design and the core programming, but most of the annoyance about outsourcing in this instance is with regards to the direct job losses that it will cause. The studio guys are safer than ever now, but the guys in QA and elsewhere are once again facing the possibility of substantial job cuts, which is something worth being annoyed about in my opinion.
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You may whine about outsourcing to India but most of the top computer, programming and coding geeks are there tbh. Not to mention that they'll have a greater drive to work than you lazy first worlders who think you just naturally deserve work, rather than based on your skills! Free market, they'll go where the labour is best, but good news.
Bollocks to that. I just had my job moved to India purely because it's cheaper. After this was announced, we were made to train the replacements (who had flown over at the companies own expense), who were sufficiently incompetent ('below graduate level', I was told) as to require an extension of their training period to almost double the length intended. These guys promptly returned to Bangalore and bombarded us with technical support questions that (literally) 5 minuts of google answered, before the outsourcing company decided to move the work to Chennai and thus over to an entirely new set of completely untrained people.
Oh, and the best bit was when said company received test networking kit (no naming of my ex-employer, but it has a name derived from a certain Californian city famed for its big red bridge). They received this router - worth around quarter of a million squid (I forget the exact model, but IIRC it ranged from around $50,000 to $1,000,000), and what did they do? They stuck it out in the parking lot for a week during monsoon season, then slapped it unsecured on an open pick up trip to drive it cross-country.
Even the old Boss Guy (I forget his name, but he was sufficiently minted that Ferrari would call him whenever they made a new car, just to see if he'd buy it. He also had a Tesla on order) admitted that Indian University graduates were only really trained at the sort of skills useful for outsourcing - i.e. maintenance - not improvisation or problem solving. But they were a fuckton cheaper to employ (oddly, the US worker is more expensive than the UK in these figures - but Indian/Chinese is something like a 5th or so).
So the best geeks are not there, because the best workers in or from India are smart enough to move to the West where they are regarded by the major multinationals as more than just a cheap cost-cutting measure. Didn't you know that labour goes where it's cheapest, not where it's best?
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Oh, and the best bit was when said company received test networking kit (no naming of my ex-employer, but it has a name derived from a certain Californian city famed for its big red bridge). They received this router - worth around quarter of a million squid (I forget the exact model, but IIRC it ranged from around $50,000 to $1,000,000), and what did they do? They stuck it out in the parking lot for a week during monsoon season, then slapped it unsecured on an open pick up trip to drive it cross-country.
Well said and 100% accurate. I've also had my fair share of outsourced resources being replaced, seemingly at a whim after weeks of training. The worst I recall was having outsourced staff on my project being replaced three times in two weeks.
Most sensible companies will not even open their source code to outsourced companies based in India, because of a serious lack of security that is prevalent over there.
Any company that puts flat-out cost ahead of everything else, deserves all they get in return. I've seen so many UK companies 'restructure' their UK workforce into oblivion, shift everything over to India and then just 6 months later, sack off the Indian operation and bring everything back into the UK. Just a monumental waste of time and effort, not to mention the piss-poor results of using outsourced resourcing for those 6 months.
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Might be able to get more found due to price difference, but it is quality assurance and not quantity assurance.
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A lot of us are living in a strange a-historic idealised image of what Britain and Britishness are. And it's these twisted perspectives that groups like the BNP (and its less extreme relatives such as the UKIP) like to exploit when calling for a return to britishness.
I'm not fan of extremist faceless capitalism, a modus operandi that Indian corporations have adopted wholesale in their attemps at economic growth and progression. However, neither am I a fan of hippocracy, and lack of historical perspective.
As they say, what goes around comes around. Or as Malcolm X put it, this is a case of Chickens Coming Home to Roost.
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Gotta love those outsourced guys, I've worked in QA too and I remember getting involved in a bit of argument regarding how they handled resolve testing on quite a few of my bugs. I especially liked the way that as soon as a dev pointed out that they hadn't tested properly they simply confirmed the resolve rather than attempting to test it correctly. Great Quality Assurance right there.
The very idea that those that survived last years axe due to there not being enough work to sustain the department might now come to lose their jobs to outsourcing is thoroughly disappointing.
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Fuck you. Don't try to infer that my thoughts on outsourcing in India has anything to do with race.
In my direct experience, Indian outsourcing has been very poor quality. That's all there is to it. Unreliable. Sometimes unintelligible communication. Constantly rotating workforce. Unsecured working environments. The list goes on and on and nothing about it is because they're Indian. It's because they run like fucking sweatshops, so the staff employed are simply not at the right level.
My last company binned the Indian team, after 3 months of using them. On a conference call, one day later they offered to reduce their already low costs by another 60% if we'd stay with them. The reason why we were getting rid is already stated in the above paragraph, so no amount of lowering the costs would change the core fact that using them was resulting in poor results.
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Anyway, back on topic: Codemasters get a splurge of money and access to a new growing market of gamers.
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A lot of us are living in a strange a-historic idealised image of what Britain and Britishness are. And it's these twisted perspectives that groups like the BNP (and its less extreme relatives such as the UKIP) like to exploit when calling for a return to britishness.
I'm not fan of extremist faceless capitalism, a modus operandi that Indian corporations have adopted wholesale in their attemps at economic growth and progression. However, neither am I a fan of hippocracy, and lack of historical perspective.
I'm not sure where the hypocracy lies, actually.
Outsourcing is pretty much a modernized form of milking developing economies, whether in India, China, or elsewhere. It's unpleasant in several ways; firstly it re-enforces the notion of a workforce as disposable least cost assets, and secondly it encourages these developing countries to develop an educational and economic system effectively based on patronage of western-based multinationals. Patronage that solely depends on that country being economically weak enough for wages to be very low.
No-one has criticised the concept of an Indian company buying up a British one; they've criticised the concept of it buying one up and then - potentially - sacking staff here in order to bring in cheaper ones. And I dare anyone to say it's wrong to be pissed off with the concept of losing your job in order for someone else to take over not because they are better, or more efficient, or smarter, but simply and solely because they can be hired for much cheaper.
Plus, y'know, what has this got to do with UKIP or BNP or any of that tosh? This has nothing to do with Britishness, unless its some quaint british tradition I'm not aware to have the notion of keeping your job on the basis of merit.
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Ill-informed rubbish. There's a research company operating in Scotland that is at the forefront of low-cost off-shore tidal energy research. We're also pretty high up in the tables when it comes to wind power research too, it's only when we come to manufacture these systems that we look abroad, forsaking our once proud, now dead steelworking industry in favour of the cheap labour of Eastern Europe.
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While Flashpoint might have been a bit 'meh', I thoroughly enjoyed Grid and Dirt. I pray to god these poor quality indian staff don't wreck Grid 2 before it gets out of the door.
How will this effect their games output? Who knows.
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hiddenranbir is probably a student or something - someone who hasn't dealt with real-world outsourcing. Or Mergers and Aquisitions. We have a 70% to 30% split in our coding team in geographical distribution, 70% being in India. Our 30% is more efficient and produces the higher quality work and 100% of the innovation. It's like that accross any company with outsourcing, which is why most businesses recommend that exact opposite of what we have. Shame our company hasn't caught on yet.
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Do a bit of research and you will see that Reliance is one of the most successfull companies in the world, its a company that deals in the hundreds of billions, with that sought of track record I trust they know how make good INVESTMENTS and have potentially saved british jobs.
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Do a bit of research and you will see that Reliance is one of the most successfull companies in the world, its a company that deals in the hundreds of billions, with that sought of track record I trust they know how make good INVESTMENTS and have potentially saved british jobs.
They own half of Codemasters. That's a little bit more than an 'investment'.
Also, companies 'invest' to make money. How do you make money? You cut costs. How do you cut costs? You farm the work out to cheap, outsourced locations. Like India. Where this company is based.
Don't forget, these comments aren't full of outsourcing discussion out of nowhere. It was clearly stated from within the article, as a 'positive' thing. Well, no it's not. Not for UK employees.
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Be worth checking who they work with! Who are they? A lot of projects are international. Universities are partnering a lot now.
There is a real shortage of skills in this country, can't deny that.
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Do a bit of research and you will see that Reliance is one of the most successfull companies in the world, its a company that deals in the hundreds of billions, with that sought of track record I trust they know how make good INVESTMENTS and have potentially saved british jobs.
Potentially, yes. And potentially no.
Looking at Reliance it appears that the majority, if not all, of their work is done in India (whether providing outsourcing to other companies, or others parts of the businesses operation). I've not found anything to indicate that they invest externally, and the direct mention of outsourcing implies that at best any extra work will be outsourced to India or other 'cheap' nations.
Plus, frankly, doing deals in billions of pounds means bugger all. I'm pretty sure even the most rapacious bastards of companies do deals in the billions, and a good investment is one which makes the shareholders wealthier. Staff rights, quality of product, none of these count when there's money to be made.
Point being, when the first press release accompanying a half-buyout by a company from India - a country reknowned for its cheap tech labour - mentions outsourcing it's pretty damn ominous for those employees based in the UK, Europe, or US.
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Not all investers look to pick up companies that they think are failing so they can storm in and change everything around - its too risky and too much work. Many smart investors (particularly the multi bilion earning ones that own many hundreds of companies - seriously look at what Reliance do, its pretty much everything) can pick up well run companies without interfering too much because they believe they can offer them something to make them grow and share in that success.
I don't know which way Reliance will heading, we will have to wait and see, but I won't jump to conclusions.
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@ GeorgeRoper - well said. Anytime anyone criticises outsourcing someone jumps in with the race card. Doesn't matter what colour they are or where they live, outsourcing often precedes a huge drop in service levels. It doesn't make you racist to question it as a business practice.
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No-one has criticised the concept of an Indian company buying up a British one; they've criticised the concept of it buying one up and then - potentially - sacking staff here in order to bring in cheaper ones. And I dare anyone to say it's wrong to be pissed off with the concept of losing your job in order for someone else to take over not because they are better, or more efficient, or smarter, but simply and solely because they can be hired for much cheaper.
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Isn't that what all of us do whenever we buy something? Shop for the cheapest utility bills, fuel, clothes, toys, find the cheapest insurance quote online, cheapest handyman to fix your wall etc.
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Of course but by and large, those things you've mentioned don't have anything else hanging on them. For example, I shop around for the cheapest shop for the game I want but that doesn't mean that the game I buy from that shop is any different than if I bought it from any other shop.
If I did shop around for the cheapest service, such as installing a new kitchen you can be sure that I wouldn't give my cash to some cowboy who has a history of poor workmanship, who can't be relied on to give you proper updates and who constantly hires new staff who don't have the right training.
No, whichever way you spin this it doesn't come out good. Outsourcing work is cheap but it results in shoddy work.
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Isn't that what all of us do whenever we buy something? Shop for the cheapest utility bills, fuel, clothes, toys, find the cheapest insurance quote online, cheapest handyman to fix your wall etc.
AFAIK most people would think it a tad.. well, not irrational but a bit shittish, to select a one-handed handyman whose hammer is missing a head, thus replacing your existing competent handyman purely because he (or she) is cheaper. Particularly when you are selecting that handyman not for yourself but for someone renting from you.
Yes, you can stretch to some sort of equivalence with private shopping. But you can probably stretch Steven Gerard changing the tune at a pub to some sort of equivalence with the bombing of Dresden - it doesn't entail it's a fair or rational equivalence. If it did, you could quite possibly stretch a little more and justify replacing those outsource workers with even cheaper 8 year old orphans.
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Do I drink Tesco Value Lager?
Do I wear nothing but Primark clothes?
Do I drive a Citroen?
Do I fly Ryanair?
Do I watch TV on a tiny black and white set with a coathanger for an antenna?
Do I feast on Asda Scumprice cheese, bread and baked beans to survive in my one bedroom hovel, cooking them on a hotplate rather than a microwave?
NO to all of the above. I buy nice things because I don't want to drink horse piss/have tatty clothes falling apart/have a car that disintegrates and is worth £4 in a year's time/fly worst class after paying to check in/enjoy what I'm watching/enjoy what I'm eating.
By all means be frugal with your money but what the hell good is it doing you if it's all sitting in your bank account while you live in squalor? Buy yourself that nice sandwich from M&S. And the posh Czech lager. And a nice car. And some decent clothes to wear on your nice trip that you saw on a holiday show on your big HDTV.
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I will say this though: I voted with my feet and got the hell out of the UK altogether.
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Watch...
PS. Hope they mentioned Dragon Rising in their disclosure letter!
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