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The real cost of PLEX

Author
Rod Blaine
Federal Navy Academy
Gallente Federation
#121 - 2011-11-19 10:45:25 UTC  |  Edited by: Rod Blaine
It's really very simple: the market is always right, and CCP doesn't get involved at all in the PLEX market.

They might do things like PLEX pomotions, but that's probably just because they needed to bring some of their future earnings forward in time. Nothing to do with players liking or not liking the price of PLEX, but likely due to a simple need for cash.

There are two variables in play only; the amount of isk being spent on gametime via cash and the amount of cash being spent on isk via gametime. Gametime = PLEX = the medium of echange.

The exchange level (=price level of plex) has been in flux lately. So there can be two causes for this:
1. more cash being spent on isk: more players want to buy isk because it's become more attractive for them to do so.
2. more isk being spent on gametime: more players want to pay for their play with isk, since it's become more attractive for them to do so.

Considering plex prices are and have been rising lately there's really only two options:
- less supply of plex
- more demand for plex

If you ask me, seeing how anom and incursion earning rates are through the roof in comparison with historical isk earning rates, my bet is on there simply being too many people wanting to pay for their play with isk, realtive to there being people wanting to pay for their play in cash.

Casual playing and cash paying customers (the guys likely to use plex to get themselves some isk) might slowly be dying out because CCP is more or less telling that part of the playerbase to GTFO. Raiding style pve (incursions/WH/new officers), alliance sov warfare, supercaps, long industry production chains with alot of vertical supply chain integration going on in the market, and complex economic infrastructures in space all don't really fit in with a casual playstyle.

However, microtransactions, RMT and paying in cash by choice do.
So, unless there's more attention to playability for the casual player, this inflatory effect is likely to last a while yet.

So *if* CCP act, it should be by prioritising some content over other.
Florestan Bronstein
Ministry of War
Amarr Empire
#122 - 2011-11-19 10:46:57 UTC
Jooce McNasty wrote:
Please explain to me how CCP will step in with the cost of plex? If they put a hard cap on the max sell price they have just ruined they open market, and players will revolt.

If they magically make a pile of plex from thin air they are losing money, and players will revolt because they droped the value their plex by making new ones.

CCP will no do anything with the price of plex. There is no way they can do anything without ruining part of their game.
.

They can create (and have done so) incentives for people to buy more PLEX and sell them on the market.
IHaveCandyGetInTheVan69
Crouching Woman Hidden Cucumber
#123 - 2011-11-19 10:50:10 UTC
Rod Blaine wrote:
It's really very simple: the market is always right, and CCP doesn't get involved at all in the PLEX market


Lol

Seriously? The Nex store, simply to boost plex price, all the 'plex for good' as well as countless other things.

No CCP do not directly alter plex price, but you can be sure they try their best to manipulate it.
Jooce McNasty
Islefive Consulting
#124 - 2011-11-19 14:34:40 UTC  |  Edited by: Jooce McNasty
Florestan Bronstein wrote:
Jooce McNasty wrote:
Please explain to me how CCP will step in with the cost of plex? If they put a hard cap on the max sell price they have just ruined they open market, and players will revolt.

If they magically make a pile of plex from thin air they are losing money, and players will revolt because they droped the value their plex by making new ones.

CCP will no do anything with the price of plex. There is no way they can do anything without ruining part of their game.
.

They can create (and have done so) incentives for people to buy more PLEX and sell them on the market.


They could do this, but depending on the price of plex it could do nothing. The players who bought the plex at the promotion price could just as easily turn around and sell them for the same price as the market is at.

The increase of supply does not automatically decrease the demand and cost.

Everyone has a value for everything. What will cause the price of plex to drop is when people stop buying them at the inflated price... As long as people feel that the value of plex is 500-600 mil then there is no reason for the market to drop even with a inflated supply. True an inflated supply could/would drop the price down, that is only if the people selling the plex are willing on undercutting each other just to make a sale, and if the supply hits a over-saturation point and people will become desperate to make a sale.

I would be fine with seeing plex stay at about 500mil. Personally I feel that it is a reasonable price to pay. I always though that 350-400 mil was a little to low.
Rod Blaine
Federal Navy Academy
Gallente Federation
#125 - 2011-11-19 16:49:04 UTC
IHaveCandyGetInTheVan69 wrote:
Rod Blaine wrote:
It's really very simple: the market is always right, and CCP doesn't get involved at all in the PLEX market


Lol

Seriously? The Nex store, simply to boost plex price, all the 'plex for good' as well as countless other things.

No CCP do not directly alter plex price, but you can be sure they try their best to manipulate it.


You attribute that motive to those actions by CCP, they certainly have not.

The nex store isn't here to boost plex prices. Why would it? It's there to earn CCP cash. They use plex as a medium because that is the way they choose to set it up. As far back as 2005-2006 CCP already was playing with the idea to set up an intermediate currency (they called it "tokens" in the design phase) in order to further structurise the RMT processes supported by CCP.

MT's aren't new to CCP either, they've always been there in the long term design plans for EVE. allowing GTC for isk transactions were step one, then came actively supporting and policing them, and finally an intermediate currency was introduced, at least two years after they first internaly formulated the plan to do so. The NEX store fas subsequent step was there in concept even before Plex came into being.

Do not make the mistake of seeing all CCP's actions in light of your pet theory/peeve.People here tend to credit CCP with too much subtlety. CCP hasn't been subtle about RMT in any way other then by pacing their progress towards a long term development goal.

CCP will not manipulate plex prices, since there's no need to. Their bottom line doesn't depend on plex price, it depends on the willingness of their subscriber base to use that medium. Price has very little to do with that.

And anyway, current price levels are nothing special. The current cost of gametime in terms of isk is still relatively low compared to historic price levels.
Jinn Rho
Ministry of War
Amarr Empire
#126 - 2011-11-19 18:11:56 UTC  |  Edited by: Jinn Rho
Boadicea Wales wrote:
blah blah blah blah blah :angryemoticon: blah could! blah blah


Man, so much butthurt for having to log in a casual 1-2days a month for a PLEX Roll
Tired of playing EVE? Go play a free MMO.
Tired of online game commitment? Go play Plants vs Zombies.

Quit running your mouth and move on already. Get off the computer, then.
sheesh.





best part of the post was when the OP actually read up on Incursions, and still resorted to tinfoil antics. could, could, COULD!




and with all the much anticipated 'fixes' this Crucible, i doubt a sharp decline in players numbers in 90 days.
Lord Mandelor
Oruze Cruise
White Stag Exit Bag
#127 - 2011-11-19 18:52:46 UTC
ITT: OP is angry about having to play the game to buy plex, and is equally upset about having to pay for a game he doesn't want to play.

I'm disappointed by the lack of "can I have your stuff?" posts.
Jett0
Ministry of War
Amarr Empire
#128 - 2011-11-19 19:25:22 UTC
I just want to point out that a subscription-quality MMO that you can play for free with no restrictions, with the only cost being that you have to play it, is a great concept.

As EvE is a free market economy, PLEX prices, like anything else, are subject to fluctuate based on supply and demand. As said before, a new expansion is going to drive demand for game-time up. This is normal, and nothing to fret about. Wait until Crucible wears off, and you should see PLEX return to normal.

Occasionally plays sober

DownTwisTeD
Doomheim
#129 - 2011-11-20 10:02:20 UTC
you know like go out there and dig up your own isk or worse Rat for it and see then if these time cards are worth 500 mil..

like, worse then not! i say its them freaken Rockafellas / Socialights busting you asses, screwing tth the working man over in eve..

slave on dudes.. Shocked

Go trade union! kick some Rockafellas/Socialights ass in eve..
Lisa Starblazer
Defiant..
#130 - 2011-11-20 12:41:23 UTC
If your so upset at having to spend 5-8 hours of almost risk free time earning your 500mil, consider doing something more risky.

There are pve activities that will regularly net you 500m-1bn isk an hour if you step away from high sec
True Sight
Deep Freeze Industries
#131 - 2011-11-20 12:51:23 UTC
Boadicea Wales wrote:
the cost of a plex in ISK has gone up 41 million isk in the last 6 days and is now topping a masive 500 mill isk on the markets.

I personal think this is now out of reach for many of the casual players currently playing eve and will ultimatly drive them away, I speak as one my self.

Playing for free was for me the last realistic draw for playing EVE.

What has the real cost of PLEX been for the game as a whole. Is it a good thing turned bad by sheer greed as with so many other things in the game.

I personal think that in 90 days time the eve population will fall drasticly. Sadly I don't think I will be around to see if I am right or not. Paying real money to be this bored is not really that apeeling to me.

Shocked
No you can not have my stuff
Shocked


Ultimately, if you are a customer who doesn't want to give CCP money to play their game, why should they care that you quit?
Alain Kinsella
#132 - 2011-11-20 13:09:46 UTC
Luh Windan wrote:
(if CCP *are* influencing the price they will have to be very careful because of a backlash and or possible illegality. If, in the extremely unlikely event they thought it was a good idea, they could of course have people buying PLEX with freshly minted virtual ISK - a sort of quantitive easing which would increase PLEX demand and increase the money supply. I cannot imagine for one second a company like CCP would ever do this - it would be to great a risk to their ongoing existance )


I've mentioned in the old forum that CCP can easily sell PLEX that came from permabanned accounts (or even were confirmed destroyed in combat). The ISK earned from that could be used to trade just like everyone else, so there would still be some form of balance within the game without breaking any major rules.

This originally came to mind when Dr E did not want to disclose how many PLEX were destroyed since that became possible (See this year's Economy Fanfest discussion).

Your post is otherwise spot-on IMO.

As for the OP, while I may have a skewed view of cost in games like this (after throwing approx $2700 into Second Life over 18 months) even I think you're overreacting a bit. If you're really this despondent about the costs I strongly suggest a proper 'vacation' from Eve (i.e. go find a 21-30+ day skill to train and walk away until finished, or just unsub for now). Done this several times now (each time for about a month) and has been a good way to keep me interested.

"The Meta Game does not stop at the game. Ever."

Currently Retired / Semi-Casual (pending changes to RL concerns).

Pinaculus
Aliastra
Gallente Federation
#133 - 2011-11-20 13:37:22 UTC
Ranger 1 wrote:


I know sometimes it's difficult to realize just how much you spend on incidental things each month or year, but seriously, EVE is very cheap entertainment compared to most things. Look at your monthly cable or satellite TV bill sometime, or the bill from your ISP. If you are a smoker, smoke one less pack a week and pay for EVE, with money left over to pick up a cheap bundle of flowers for the EVE widow upstairs.



This is sig worthy

I know sometimes it's difficult to realize just how much you spend on incidental things each month or year, but seriously, EVE is very cheap entertainment compared to most things... If you are a smoker, smoke one less pack a week and pay for EVE, with money left over to pick up a cheap bundle of flowers for the EVE widow upstairs.

Azahni Vah'nos
Vah'nos Family
#134 - 2011-11-20 14:21:46 UTC
Rod Blaine wrote:
IHaveCandyGetInTheVan69 wrote:
Lol

Seriously? The Nex store, simply to boost plex price, all the 'plex for good' as well as countless other things.

No CCP do not directly alter plex price, but you can be sure they try their best to manipulate it.


You attribute that motive to those actions by CCP, they certainly have not.

The nex store isn't here to boost plex prices. Why would it? It's there to earn CCP cash. They use plex as a medium because that is the way they choose to set it up. As far back as 2005-2006 CCP already was playing with the idea to set up an intermediate currency (they called it "tokens" in the design phase) in order to further structurise the RMT processes supported by CCP.

Are you completely forgetting how NEX items get into the game. You have to purchase Aurum via PLEX or those items do not exist in the game in the first place. The free Aurum will dry up before long, which was just the old marketing 'the first hit is free' mentality from CCP.

Let's look at the NEX moving forward, all items will be purchased via PLEX and you might scoff and say 'no people will buy them from others for ISK', wrong. Why would anyone buy a PLEX to convert it to 3500 Aurum and then buy a NEX item to put on the market when the item would probably sell for 1/10 to 1/5 of the ISK they could get from selling the PLEX directly (500 mil currently). They would be losing ISK.

Now what do you think will happen to PLEX prices once CCP put something that people actually want on a large scale in the NEX, I can guarantee what it won't do and that is make PLEX prices go down. Demand for them will become even higher than we see now.


Yes theories were thrown around at CCP for RMT and guess what they decided on, that's right PLEX. Which they should have been happy with rather than adding this NEX/Aurum garbage.
Quote:
MT's aren't new to CCP either, they've always been there in the long term design plans for EVE. allowing GTC for isk transactions were step one, then came actively supporting and policing them, and finally an intermediate currency was introduced, at least two years after they first internaly formulated the plan to do so. The NEX store fas subsequent step was there in concept even before Plex came into being.

No the NEX store is much more recent in CCP's thinking and watching presentations by Dr EyjoG it appears more like they have looked at what has been happening in other games, even F2P with microtransactions and decided it was a nice additional money making stream. Only problem for CCP is they overestimated the demand the EVE playerbase would have for clothing.
Quote:
Do not make the mistake of seeing all CCP's actions in light of your pet theory/peeve.People here tend to credit CCP with too much subtlety. CCP hasn't been subtle about RMT in any way other then by pacing their progress towards a long term development goal.

CCP will not manipulate plex prices, since there's no need to. Their bottom line doesn't depend on plex price, it depends on the willingness of their subscriber base to use that medium. Price has very little to do with that.

And anyway, current price levels are nothing special. The current cost of gametime in terms of isk is still relatively low compared to historic price levels.

Tell me why CCP had to layoff 20% of their workforce. Was it because they didn't want to further develop those projects or perhaps because money was starting to get a little tight and also with loan repayments coming up on their due date. CCP needed money and were prepared to do a little extra milking of their playerbase to keep everything in development.

Unless you don't think CCP would do that, because I can give you plenty of examples where other companies have done exactly that through various means.

And if you still don't believe me then do some research where CCP spoke about the NEX items funding other projects with a very small portion of the money going back into EVE development.


The NEX Store should have never been put into EVE in the first place, simple as that. It just reeks of poor decisions and does nothing to benefit the game.

Nex (Cash Shop) / Aurum - removing sand from the sandbox since Incarna. Currently the only use for aurum is to buy virtual items in the in-game store, but Cockerill expects to expand its uses in the future.

Aineko Macx
#135 - 2011-11-20 14:35:21 UTC
The more successful (as in players getting back to playing) the upcoming expansion is, the more PLEX prices will fall.
Jinn Rho
Ministry of War
Amarr Empire
#136 - 2011-11-21 03:25:41 UTC  |  Edited by: Jinn Rho
Azahni Vah'nos wrote:


a whole lotta text



So.... what are you getting at?


Since a vast majority are not buying into Aurum, an over-saturated PLEX market (supply) would mean a decrease in consumer cost (demand)....
How would you explain high PLEX volumes and high PLEX costs when the off-demographic "Sims in Space" was abandoned? I doubt PLEX jumped because of Aurum, especially when one can't even do anything significant/social with clothes.

Something else is the catalyst for the sharp increase.
Incursion's raw isk?
Moon goo?
Ice goo?
Market manipulation?
Rakshasa Taisab
Sane Industries Inc.
#137 - 2011-11-21 03:38:55 UTC
Jooce McNasty wrote:
They could do this, but depending on the price of plex it could do nothing. The players who bought the plex at the promotion price could just as easily turn around and sell them for the same price as the market is at.

The increase of supply does not automatically decrease the demand and cost.

I, my name is Jooce McNasty, and I do not know anything about how markets and supply/demand works.

Nyan

Akira Yamasara
Garoun Investment Bank
Gallente Federation
#138 - 2011-11-21 03:46:35 UTC
I was determined to read this whole thread but then I found something better to do. I'll just say this. In RL I make about 15 dollars an hour. I would rather have 1 hour of my RL pay for playing EVE than 5 hours of my in game time.
Ranger 1
Ranger Corp
Vae. Victis.
#139 - 2011-11-21 03:55:26 UTC
Is this a bad time to point out that PLEX prices are dropping steadily now? Big smile

View the latest EVE Online developments and other game related news and gameplay by visiting Ranger 1 Presents: Virtual Realms.

THXBYE
Elite War Squad
#140 - 2011-11-21 03:55:42 UTC
Its easy to understand for two reasons at least:

- New patch coming, people is returning to the game.
- Promotion of the power of two, people is creating alts and need 3 plexes per.

More plexes sold more plexes are needed, price increase.

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