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In Game Dev Story, you are able to change where your employees sit. Does this have any affect on how well they perform (for example, a seat closer to the boss will result in more points added to a game), or are these changes purely cosmetic?

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You can get a very slight advantage by putting the employees with the smallest power bars at desks closest to the door. They will have to go home and rest more often, and it will shave off a few seconds of walk time with each trip. However, using a lot of Dead Bulls allows you to almost completely avoid this problem anyway.

I've also wondered if certain employees tend to go talk to each other more (giving + research) or propose trying to increase the ____ of the game. If that's true, then it would make sense to seat them close to each other, or next to the boss, again decreasing walk time. This is just speculation though.

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Not much. The accepted wisdom is, "Put the employees with the lowest energy bars closest to the doors" so their transit time to and from their seats is low.

It seems logical that you'd also put them near the people they talk to most, but I've never been able to figure out if there is any way to predict that.

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Both great points on how to position your employees. Another thing to note is if you have one employee constantly coming to your desk for boost attempts it might make sense to move them closer to you. Less time walking between their desk and your desk = more time working. –  Crag Feb 18 '11 at 18:10
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Good answers, and possibly true and helpful, but I believe that the true use of "Move Seats" is to give a fine-grained delay to launch your game at "Christmas Break". Move Seats will take about 3 days in the game, during which period of time, they will be unproductive.

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