Crisis in the Visual Effects Industry?

[Newt]

http://thebigsocialpicture.blogspot.co.uk/2013/02/the-oscar-protest-that-you-didnt-know.html

"The film Life of Pi was nominated for Visual Effects (and won!), but sadly the studio that did the effects for the movie (Rhythm & Hues) had to file for bankruptcy a few weeks ago, and laid off close to 250 employees.  The protest was named "A Piece of the Pi" to show that the VFX studio behind the film wasn't getting their share of its success."

They make it sound like some sort of "sweat shop" setup.

I know the link is just a blog, but there seems to be an issue here - or is there?  I am not sure what to think.  

[Rev. Powell]

Here's a better link, with video: http://www.huffingtonpost.com/2013/02/24/jaws-oscars-life-of-pi-_n_2756380.html?utm_hp_ref=tw.

The crisis, apparently, is that overseas shops will do FX cheaper, meaning that California-based companies can't compete. Not to be rude, but boo hoo. 

[Newt]

So essentially the same deal as every other business.  Welcome to the club, boys and girls.

[Pacman000]

Does this mean half the credits in a modern movie will be in Chinese, like Tron?