Sony and Activision over UK tax breaks

[theRepublic]

Khuutra said:

Media Molecule being relocated to Vancouver would cost the UK a lot more money than MM paying lower taxes, and that's a pretty strong bargaining chip.

Hold on a second.

It is not that easy to just move a company to a different country.  Especially since we are talking about a developer.  The only thing that really makes MM who they are is the people who are working there.  If you try to relocate the company to a different country, you are going to lose many of the people who worked there.

Then what are you left with?  The original company will be a shell of its former self, and a bunch of talent available on the job market in the UK.  Either competing studios are going to pick those people up, or maybe those former employees start their own studio.  So you have simultaneously hurt your own position, and given yourself more competition.  Not a good move.