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Regarding Inflation and plex prices.

Author
Wes Magyar
State War Academy
Caldari State
#1 - 2012-02-18 10:28:24 UTC
So a disturbing trend i have noticed lately is that Plex prices as well as the prices for everything else have gotten higher and higher over the last few months.
The prices of plexes has caused more then a few of my friends to leave the game. Not to mention the cost of everything else. This is caused primarily due to the influx of ISK generated by Incursions and the sheer amount of people participating in them.
There are multiple solutions to this but i have one that can possibly stabilize the Eve Economy.
A mechanic similar to a Gold Standard. Make a Set price point for PLEX. i know alot of people will EMO Rage about this but its rather Simple. Plex's where introduced to combat Isk farmers. its having the opposite effect. I recently spoke to someone who bought isk from a site in order to buy PLEX. seems kinda bass ackwards dont it?
Setting a gold standard with plex prices will in turn be able to help lower the economy becuase people like me that do industry and other things wont have to jack up prices in order to make our monthly plex fee. now my recommendation for plex prices is somewhere between the 300-400 mil range. 500 mil is a bit to high imho.
im sure ill get flamed relentlessly over this post but meh.

-Wes-
Serge Bastana
GWA Corp
#2 - 2012-02-18 11:21:36 UTC
If you're friend was buying ISK from websites to buy PLEX then indirectly they're not helping the problem, besides risking the usual repercussions for buying ISK illegally. If they'd got a 60 day GTC with the money they spent on buying illegal isk they could have had 2 PLEX for a reasonable price, risk free.

Really the price hike in PLEX is due to supply/demand. As more people are buying GTC to redeem as PLEX and making profits on the market then supply is starting to meet demand. It's a shame that people are leaving the game due to not being able to afford to pay for the game time with the ISK they earn and I think CCP will be looking at the reasons why. I'm not certain an artificial limiter on the price would help though really, seems a bit arbitrary and will hamper those purchasing GTC to sell for ISK thus reducing CCP's income overall.

WoW holds your hand until end game, and gives you a cookie whether you win or lose. EVE not only takes your cookie, but laughs at you for bringing one in the first place...

Daeva Teresa
Viziam
Amarr Empire
#3 - 2012-02-18 11:41:21 UTC  |  Edited by: Daeva Teresa
CCP is regulating PLEX price through lovering the real money cost of it. Last week they lovered the price and the in-game price is dropping. But its not enough.

What I dont like is the fact, that buying plex costs more real money than month subscription. Also its not profitable to buy more than 2 plexes. 1 plex costs 19,95E. If you buy more it costs 17,495E per plex. Monthly subscrption costs 14,95E.

CCP really please dont use Upgraded, Limited, Experimental and Prototype in item names. It sounds like the item is actually worse than basic meta 1 item. Use Calibrated, Enhanced, Optimized and Upgraded. Its really easy to understand that the item is better than meta 1 and its also in alphabetic order.

Wes Magyar
State War Academy
Caldari State
#4 - 2012-02-18 11:45:48 UTC  |  Edited by: Wes Magyar
well here is the problem CCP is already losing money if their purported goal is to combat isk buying. at some sites such as IGXE you can purchase almost 2 billion isk for the same price as a GTC.
If CCP artificially controlled the prices of plexes and made them more affordable there would be more demand for them as people would be more willing to purchase plexes. i think it would even out as time progressed because the idiots that buy isk eventually get caught and who needs those idiots in the game anyway. i for one haven't purchased a plex in 6 months and i spent the last 6 months unsubbed. only reason i am playing now is a friend bought me a plex for my birthday (today)
at least half of my friends that played eve if not more have quit playing due to the astronomical plex prices. one of my friends used to support 6 accounts on plexes alone and he can no longer do that so he no longer plays. and this is just out of my pool of friends. and my sample size is rather small if you look at the subscriber base as a whole im sure its much larger. Eve for the first time in years is losing subscribers and the fact that it happens to coincide with plex prices climbing over the 400 million mark and into the 500 million mark cant be a coincidence...
Mara Rinn
Cosmic Goo Convertor
#5 - 2012-02-18 13:37:18 UTC  |  Edited by: Mara Rinn
As mission-bears get older, they will have the skills to support flying fancier ships. They will accumulate the ISK required to fly fancier ships. The fancier ships will help them acquire ISK faster. Over time you would expect prices to rise simply due to the mission-bears getting better at making ISK over time.

As traders get older they accumulate more wealth, and better knowledge of the market, and thus better ability to generate riches. Over time you would expect prices to rise simply due to traders getting better at making ISK over time.

As mission-bears get older, their ships get more valuable. Thus the rewards for suicide ganging mission-bears become better over time: especially when the mission bears move to high gank/low tank ISK grinding machines. Over time you would expect prices to rise simply due to the easier access that suicide gankers have to rare modules.

Note that we can currently manufacture trauma heavy missiles for far less than the market value. The current inflationary bubble is due to speculation.

Totally independent of Incursions, there are many reasons why prices will be rising in the marketplace. There is the increasing ability for capsuleers to make ISK as they gain SP, the increasing ability for players to make ISK as they gain experience in the game, the inflationary pressure of speculators, and finally the pressure of extra ISK entering the economy via Incursions.

I am not disputing that Incursions have some impact on PLEX prices. After all, last year when the Incursion interdiction was running, the price of PLEX stalled. It is foolish to attribute the rise in prices of PLEX to Incursions alone.

Wes Magyar wrote:
well here is the problem CCP is already losing money if their purported goal is to combat isk buying. at some sites such as IGXE you can purchase almost 2 billion isk for the same price as a GTC.
If CCP artificially controlled the prices of plexes and made them more affordable there would be more demand for them as people would be more willing to purchase plexes.


Which option do you want? Lots of ISK available for a few dollars in order to be competitive with IGXE, or PLEXes available for only a few hundred million ISK in order to be attractive to people trying to pay for their game time with ISK?

Paying for your game time with ISK is a luxury for those who have ISK to spare. PLEX-for-ISK is an ISK pump intended to make CCP's legitimate RMT more attractive than IGE's illegitimate RMT, it's not a means to subsidise the gaming habits of poor people.

Wes Magyar wrote:
Eve for the first time in years is losing subscribers and the fact that it happens to coincide with plex prices climbing over the 400 million mark and into the 500 million mark cant be a coincidence.


The loss of subscribers seems to be due to the foolishness that accompanied Incarna, rather than being anything to do with PLEX prices soaring over the 400M ISK mark.
Wes Magyar
State War Academy
Caldari State
#6 - 2012-02-18 13:57:42 UTC  |  Edited by: Wes Magyar
Mara Rinn wrote:
As mission-bears get older, they will have the skills to support flying fancier ships. They will accumulate the ISK required to fly fancier ships. The fancier ships will help them acquire ISK faster. Over time you would expect prices to rise simply due to the mission-bears getting better at making ISK over time.

As traders get older they accumulate more wealth, and better knowledge of the market, and thus better ability to generate riches. Over time you would expect prices to rise simply due to traders getting better at making ISK over time.

As mission-bears get older, their ships get more valuable. Thus the rewards for suicide ganging mission-bears become better over time: especially when the mission bears move to high gank/low tank ISK grinding machines. Over time you would expect prices to rise simply due to the easier access that suicide gankers have to rare modules.

Note that we can currently manufacture trauma heavy missiles for far less than the market value. The current inflationary bubble is due to speculation.

Totally independent of Incursions, there are many reasons why prices will be rising in the marketplace. There is the increasing ability for capsuleers to make ISK as they gain SP, the increasing ability for players to make ISK as they gain experience in the game, the inflationary pressure of speculators, and finally the pressure of extra ISK entering the economy via Incursions.

I am not disputing that Incursions have some impact on PLEX prices. After all, last year when the Incursion interdiction was running, the price of PLEX stalled. It is foolish to attribute the rise in prices of PLEX to Incursions alone.

Wes Magyar wrote:
well here is the problem CCP is already losing money if their purported goal is to combat isk buying. at some sites such as IGXE you can purchase almost 2 billion isk for the same price as a GTC.
If CCP artificially controlled the prices of plexes and made them more affordable there would be more demand for them as people would be more willing to purchase plexes.


Which option do you want? Lots of ISK available for a few dollars in order to be competitive with IGXE, or PLEXes available for only a few hundred million ISK in order to be attractive to people trying to pay for their game time with ISK?

Paying for your game time with ISK is a luxury for those who have ISK to spare. PLEX-for-ISK is an ISK pump intended to make CCP's legitimate RMT more attractive than IGE's illegitimate RMT, it's not a means to subsidise the gaming habits of poor people.

Wes Magyar wrote:
Eve for the first time in years is losing subscribers and the fact that it happens to coincide with plex prices climbing over the 400 million mark and into the 500 million mark cant be a coincidence.


The loss of subscribers seems to be due to the foolishness that accompanied Incarna, rather than being anything to do with PLEX prices soaring over the 400M ISK mark.



As i stated myself as well as countless other people i know have quit as a direct result of plex prices. Both of my characters are over 60 mil sp. most of my friends are at 40m sp or above so that's not really a factor.
If you look at the market price trends of plexes there is a direct correlation of price jump for them and the release of incursions.
1+1 does indeed equal 2 for the most part. I think that it is in ccps best interest in the longrun to make plexes affordable to older and newer players. ONE of the big marketing points of eve is the fact that it can be F2P without being F2P if ya know what i mean. Inflation is bad for ANY mmo especially one with a player ran economy. if eve wishes to continue to grow and attract new players this is one of those things they will need to adapt to. Alot of the older players have grown bored of the insesant grind and with the current economy issues can no longer justify paying for a game that has lost alot of its enjoyment. the primary reason i stuck around was friends and the fact that i could pay for it with in game currency. i can really no longer do so and alot of my friends have left. If plexes where 400 mil or less i could afford to at least keep one of my toons online.
With more people able to afford plexes more of them will sell. if more of them sell people will buy them from CCP. there will always be people that go to the isk seller sites. but there conversely will also always be people that will purchase GTC's legitimately because they dont want to risk a ban. so its kind of a double edged sword. i think in the long run capping plex prices would be the best idea.
Buzzy Warstl
Quantum Flux Foundry
#7 - 2012-02-18 15:42:04 UTC  |  Edited by: Buzzy Warstl
Yep, CCP should do something about PLEX prices. Lowering the cost of large blocks of PLEX to reflect the subscription prices for a similar length subscription should do the trick nicely, since it would encourage more people to buy PLEX with real money.

Just checked, and there's a 30 dollar premium for buying 6 PLEX vs subscribing for 6 months.

http://www.mud.co.uk/richard/hcds.htm Richard Bartle: Players who suit MUDs

mxzf
Shovel Bros
#8 - 2012-02-18 15:53:22 UTC
I wish people would search for the thread (which has been done to death) before posting a new copy of it.

Anyways, here are the facts that have been pointed out many times:
Eve's market isn't inflating significantly right now. PLEX prices are up, but the market overall is within 1-2% of where it was last year (which is simple market fluctuation).

PLEX prices were driven up last summer/fall due to a combination of factors; including people switching from paying with cash to PLEX because of Incarna, people stopping buying as much PLEX to sell due to Incarna, people buying less PLEX to sell due to the RL economy, and people purposefully manipulating the PLEX market for their own profit.

Please stop mistaking a change in the supply/demand balance of one specific item as market inflation. It is quite disturbing to anyone who's ever taken even ECON 101 to see how poorly most people grasp the bare basics of economics (and makes me unsurprised at how badly people are screwing up global economics right now, if this is a representative sample of people).
Wes Magyar
State War Academy
Caldari State
#9 - 2012-02-18 20:45:35 UTC
According to Eves on market data this time last year Megathrons sold for around 78 Million currently they are selling for 120-125 mil. Ravens this time last year where around 80-83 million now they are around 105-110. Tengu's where around 235-240 mil right now they are selling for 310-320 mil. This time last year Scourge heavy missiles (now trauma) where 37 isk they are now 60-70 depending where you buy them. Warrior II;s where around 230k they are now 300k....

i can do this all day long. there is inflation. and it adds up. Sure some commodities have stayed around the same price but for a good chunk of the standard items things have gotten more expensive.
Mara Rinn
Cosmic Goo Convertor
#10 - 2012-02-18 22:07:45 UTC
Interestingly enough, the largest rise in the price of Trauma Heavy Missiles has occurred in the last few months, since November 2011. Blaming that price rise on Incursions is a little rich. It's more likely that the price rise is something to do with people coming back to the game after Crucible, and perhaps some null sec blocs switching back to drakes as their fleet doctrine ship.

The rise in price for Megathrons has occurred in the same period of time, and follows an eerily similar path: spike at the beginning of November, steep rise since that spike corrected itself.

Ravens dropped in price for half of last year, below the 80M mark. Then they started climbing rapidly in value over the last few months. Raven Navy Issues have consistently fallen in price over the last year, except for a minor bubble during January.

Tengus dropped in price at the beginning of the last year, and have started rising in price quite dramatically in the last few months.

Coolant spiked at the beginning of 2012 due to the speculation over the change to fuel blocks. The price of coolant has now started calming down, and is back to November prices. Coolant was cheapest at about June 2011.

Now the market that I care about: Tritanium. The price of Tritanium climbed ever so slightly over the course of the last year, but then since the end of December it has started to ramp up to about 4.5 ISK in Dodixie. Zydrine on the other hand has been consistently falling in value over the last year.

I wonder if the price of hisec ores is rising due to some unusual influence? Are miners quitting the game? Or are they just not mining?
Tidurious
Sebiestor Tribe
Minmatar Republic
#11 - 2012-02-18 23:25:34 UTC
We didn't think this through, did we, OP?

Ok - so you cap PLEX prices at, say, 350mil. Now, players USED to have to grind 8-10 hours in L4 missions for their PLEX. Now, they can grind 3.5 hours in incursions and get it.

With prices being capped - less and less people will be buying PLEX to support their account, as they're worth less and less due to inflation. Additionally, less pilots will be paying anything, as PLEX will be used for all accounts, since they're so cheap.

Also, how are you going to cap the price on a player-driven market? You **** with that part of the market, you **** with ALL of the market.

Sounds like you're pretty butthurt that you can't afford PLEX right now; either run some incursions, play the market, or just subscribe.
Wes Magyar
State War Academy
Caldari State
#12 - 2012-02-19 00:50:37 UTC  |  Edited by: Wes Magyar
Tidurious wrote:
We didn't think this through, did we, OP?

Ok - so you cap PLEX prices at, say, 350mil. Now, players USED to have to grind 8-10 hours in L4 missions for their PLEX. Now, they can grind 3.5 hours in incursions and get it.

With prices being capped - less and less people will be buying PLEX to support their account, as they're worth less and less due to inflation. Additionally, less pilots will be paying anything, as PLEX will be used for all accounts, since they're so cheap.

Also, how are you going to cap the price on a player-driven market? You **** with that part of the market, you **** with ALL of the market.

Sounds like you're pretty butthurt that you can't afford PLEX right now; either run some incursions, play the market, or just subscribe.


Did you not read my post and further replies? (Trollface)
i did unsubscribe. so have the majority of my friends... and 350-400 mil is still a decent price for plexes dont kid yourself.
as for making that much isk in incursions yeah if you have a large group of friends to do them or your on in the off hours. as for me i havnt had much luck. in 4 days of doing it i made maybe 500 mil becuase most of the time we spent spinning our ships looking for fleet members or every time we went to a site it was taken or so on. and that was spending 5 or 6 hours at my computer 4 days in a row. Alot of people dont have that kind of time to commit to the game.
as for people not buying GTC'S if the price was capped ROTFLOL. 2-3 years ago you could purchase a 60 day GTC for 400 mil. people still bought and sold them then. as i said things would even out eventually.
with the way the trends are going the prices are only going to go further and further up. and it prices it out for the lower tier players as i said in my OP. newer players cant really make that kind of isk and continue to purchase skill books and mods and what not. im sure if i had the motivation to apply myself i could make the isk rather handily but im not necessarily worried about myself. im worried about eve in the long run.
Adunh Slavy
#13 - 2012-02-19 04:54:50 UTC
There is a definite inflation in some sectors of the Eve economy. One of the main reasons it does not manifest in minerals, and some other areas, is because many of those items, minerals, salvage, a few odds and ends, are sourced, in part or entirely, by activities that also create ISK.

This however does not mean that PLEX price should be set. If anything it helps indicate the imbalances in the Eve economy. PLEX is an expression of time, purchased and traded with another expression of time, ISK. Prices that do not keep pace, are an indication that the value of time, in those activities, is worth less than the time actually consumed, when compared to the price of PLEX.

If you should be upset by anything, it is CCP's failure to address this imbalance. Correction of the imbalance will encourage more time being spent on activities that do not generate ISK directly, which would then tend to push PLEX prices down, though how much is anyone's guess.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Grumpy Owly
Imperial Shipment
Amarr Empire
#14 - 2012-02-19 15:00:37 UTC
Maybe its due to mining and industrials being a neglected profession and supply is falling due to less activity in this as a choice over other professions that simply use the market and don't supply it, incuring a hike in prices as supply effectively goes down or stays the same but with rising demand?

That and griefing/war activities which don't help with supply being lost?

If PvP is on the rise then demand will naturally increase.

The factors above can be contributing to price increases as a result regardless of inflationary issues.
Grumpy Owly
Imperial Shipment
Amarr Empire
#15 - 2012-02-19 15:06:41 UTC
Regarding plex specifically.

Also volumes of plex sold per month are considerable, much more then you'd expect from just incursion runners alone.

So plex behaviour cannot be attributable as an incursion issue alone.

Needless to say plex is nothing to do with inflation as it simply moves isk around.

However, if behavioural shifts are changing that certain professions are neglected because people are focusiing on isk generation to obtain plex, then the supply of goods will dimish due to the industrial profession being neglected as an isk generating proffession.

As such if plex prices spike again behaviour will shift to compensate for those wishing to plex.
Wes Magyar
State War Academy
Caldari State
#16 - 2012-02-19 16:16:23 UTC
The point of this was to Establish a Gold Standard... be it Plex or some other type of item. I think plex is a good choice because it will allow the price not to get to high for noobs to afford. And it is a real world Tangible asset that everyone can use.
For my first year in eve 100 million isk was a stupidly large amount of isk. Of course that was a long time ago. now a days it may not be so much after say 3 or 4 months in the game. but i digress. as it stands 500 million isk is a bit high for any newish player to conceivably afford and still be able to fund other activities in the game. it can be rather difficult for even relative veterans. and god forbid if you want to run multiple characters. putting a hard Cap on plex prices would give Isk a set Value that the rest of the market could fall around and help prevent inflation. while at the same time Ensuring that noobs would have the ability to purchase them. 350-400 mil is a pretty good goal and is still a decent amount of isk. For years 30 day GTC's cost around 180-200 million isk and they where still fairly while traded as i can attest. My alliance at the time made a pretty penny in commissions for selling them for CCP.
The other solution that is feasible is Lowering the payouts for most incursions while increasing the amount of sites in them. but that will just expound the problem. There are other Fundamental problems with the growth of eve (IE supercapital online and the inability of small alliances to hold space anymore without being someones *****) but those are outside of the scope of this thread.
How about this.. instead of shooting down my proposal put forward some ideas of your own? All i know for certain is that for me and most of my friends with plex prices being as high as they are it is rather difficult for us to justify paying for eve month in and month out using ISK.
Grumpy Owly
Imperial Shipment
Amarr Empire
#17 - 2012-02-19 17:17:48 UTC
Wes Magyar wrote:
The point of this was to Establish a Gold Standard... be it Plex or some other type of item. I think plex is a good choice because it will allow the price not to get to high for noobs to afford. And it is a real world Tangible asset that everyone can use.
For my first year in eve 100 million isk was a stupidly large amount of isk. Of course that was a long time ago. now a days it may not be so much after say 3 or 4 months in the game. but i digress. as it stands 500 million isk is a bit high for any newish player to conceivably afford and still be able to fund other activities in the game. it can be rather difficult for even relative veterans. and god forbid if you want to run multiple characters. putting a hard Cap on plex prices would give Isk a set Value that the rest of the market could fall around and help prevent inflation. while at the same time Ensuring that noobs would have the ability to purchase them. 350-400 mil is a pretty good goal and is still a decent amount of isk. For years 30 day GTC's cost around 180-200 million isk and they where still fairly while traded as i can attest. My alliance at the time made a pretty penny in commissions for selling them for CCP.
The other solution that is feasible is Lowering the payouts for most incursions while increasing the amount of sites in them. but that will just expound the problem. There are other Fundamental problems with the growth of eve (IE supercapital online and the inability of small alliances to hold space anymore without being someones *****) but those are outside of the scope of this thread.
How about this.. instead of shooting down my proposal put forward some ideas of your own? All i know for certain is that for me and most of my friends with plex prices being as high as they are it is rather difficult for us to justify paying for eve month in and month out using ISK.


First prove that the main plex issues are associated with incursions. Rather than using it as a scapegoat.

Plex volumes are too large to soley be attributable to incursion runners. Incursions are not the main isk faucet to the game by contribution.

Also negating the effects as you claimed as an inflation issue to the economy and behavioural changes and neglect to the industrial base now or the isk transferance associated with supply and demand? Wonder why?

Thusly other issues either associated with behaviour or other income generating sources may be the issue here.

Possibly erroneaous tactics focussed by predjudice IG as a meta issue while missing the real problems or issues could simply propogate if not make the EvE experience even worse in the long run.
Wes Magyar
State War Academy
Caldari State
#18 - 2012-02-19 18:26:18 UTC
ok first off didn't understand 90% of your reply but as for plex prices.

this time last year they where 300 million now they are near 500 million...
so what happened around this time last year? the release of incursions. if you go further back in the price data you will find that before then plex prices where fairly steady. floating between the 250 to 300 million range for quite awhile. And as more and more people started doing incursions the price has climbed steadily, now people are going to say well thats becuase demand is higher... well that's not true.. looking at the numbers there have been ups and downs but the amount being sold has actualy declined.
This information is easily accessible. open your market in eve. search for plex. then select it and click on price history. and voila.. data...
Grumpy Owly
Imperial Shipment
Amarr Empire
#19 - 2012-02-19 18:39:44 UTC
Wes Magyar wrote:
ok first off didn't understand 90% of your reply but as for plex prices.

this time last year they where 300 million now they are near 500 million...
so what happened around this time last year? the release of incursions. if you go further back in the price data you will find that before then plex prices where fairly steady. floating between the 250 to 300 million range for quite awhile. And as more and more people started doing incursions the price has climbed steadily, now people are going to say well thats becuase demand is higher... well that's not true.. looking at the numbers there have been ups and downs but the amount being sold has actualy declined.
This information is easily accessible. open your market in eve. search for plex. then select it and click on price history. and voila.. data...


And the plex spike occured around the time of the crucible announcement and was a "spike" not a gradual increase you would have seen over time if incursions where he cause for the period they have been introduced.

Prior to that there was the "power of two" promotion.

There were also people manipulating the prices at the time of the spike.

Seems to me to be more likley attributable to re-activation of accounts and ongoing plexing to achieve things, maybe stock up on new BC BPs or the BCs themselves aswell as numerous other additions. Seems more likley seeing as it occured co-incidentally around it dont you think?

When you combine that with volumes of plex as I mentioned before and all other potential isk faucets it still seems unproven to me in a big way.

Seeing the price history does not attribute who is buying them then if you can't find an attributable link to incursions as the main issue for plex increases then you can't use it as a logical argument to afford changes solely to them as a "nerf" as a result. QED.
Daeva Teresa
Viziam
Amarr Empire
#20 - 2012-02-19 18:42:56 UTC  |  Edited by: Daeva Teresa
Guys, you all are looking at this problem from bad angle.

People will buy plex with real money and will sell it for isk only if they need isk - large amount and fast. Since its really easy now to make large amounth of isk fast (incursions, sleepers) lot of people who funded theyr's pvp with real money just don't need this anymore.

Please stop looking at this problem from view of people who buys plex with isk. The real problem here is people who buys plex with real money and then sells it for isk (im one of these people).

CCP really please dont use Upgraded, Limited, Experimental and Prototype in item names. It sounds like the item is actually worse than basic meta 1 item. Use Calibrated, Enhanced, Optimized and Upgraded. Its really easy to understand that the item is better than meta 1 and its also in alphabetic order.

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