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T2BPO why they should be removed and how.

First post
Author
Pipa Porto
#821 - 2012-07-22 18:53:27 UTC
Jorma Morkkis wrote:
Akita T wrote:
Or, in other words, you CAN'T remove them


The fact that you don't want them removed doesn't mean it can't be done.


Context, it matters.
Uris Vitgar wrote:
bear in mind CCP's general policy of not taking away what they have given


Quote:

Pipa Porto wrote:
Happily, CCP just announced a buff to Invention compared to BPOs by introducing Tech alchemy.


No, that will be buff for T2 BPO owners.


BPO owners have an advantage on material costs. When material costs decrease, that advantage decreases. Cheap inputs reduce the advantage that waste conscious manufacturers (BPO owners) have over wasteful manufacturers (Inventors).

Reducing the price of inputs is a relative buff to inventors.

EvE: Everyone vs Everyone

-RubyPorto

Pipa Porto
#822 - 2012-07-22 19:00:38 UTC
Brewlar Kuvakei wrote:
I agree it's highly unlikely that CCP will stop handing out massive advantages to pet players.


Got any evidence of Dev misconduct, please send it to CCP's IA department. If you have and they haven't dealt with it, you might try the media.

T2 BPOs stopped being seeded like 5 years ago, and you have, as yet, provided no evidence to suggest that the Lottery was performed unfairly. You've also failed to show how T2 BPOs are a "massive advantage" since they represent an enormous amount of capital investment (no matter how they were acquired, the opportunity cost of not selling them is functionally equivalent to the opportunity cost of buying them) for a piddling little profit.

T2 BPOs used to be massively OP, allowing organizations to easily monopolize T2 items. Then invention came, and T2 BPOs have been marginalized to the point that they only affect the markets of those few items so unpopular that BPOs can fill the demand.

EvE: Everyone vs Everyone

-RubyPorto

Pipa Porto
#823 - 2012-07-22 19:04:54 UTC
Brewlar Kuvakei wrote:
As T2 production costs isk in materials so no it could not crash or people would simply reprocess items for materials.


Yes, reprocessing your T2 stuff for the Morphite content. You have no idea what you're talking about, do you?

The BPC idea (depending on how it was implemented) could easily crash the T2 markets by allowing former BPO owners to essentially run their BPO in parallel, which would give them an enormous advantage over Inventors until the BPCs run out, flooding the market with T2 items at low prices.

EvE: Everyone vs Everyone

-RubyPorto

Jorma Morkkis
State War Academy
Caldari State
#824 - 2012-07-22 19:34:56 UTC
Pipa Porto wrote:
BPO owners have an advantage on material costs. When material costs decrease, that advantage decreases. Cheap inputs reduce the advantage that waste conscious manufacturers (BPO owners) have over wasteful manufacturers (Inventors).

Reducing the price of inputs is a relative buff to inventors.


It will help T2 BPO owners more. CCP is going to remove only disadvantage from T2 BPO.

T2 BPO owners will get more profit because material costs will be reduced.
Pipa Porto
#825 - 2012-07-22 19:53:05 UTC
Jorma Morkkis wrote:
Pipa Porto wrote:
BPO owners have an advantage on material costs. When material costs decrease, that advantage decreases. Cheap inputs reduce the advantage that waste conscious manufacturers (BPO owners) have over wasteful manufacturers (Inventors).

Reducing the price of inputs is a relative buff to inventors.


It will help T2 BPO owners more. CCP is going to remove only disadvantage from T2 BPO.

T2 BPO owners will get more profit because material costs will be reduced.


T2 BPOs disadvantages are their immense capital cost and their inability to run in parallel. This doesn't touch those.

It reduces the value of their efficiency advantage, since the material cost will represent a smaller proportion of the invention dominated price (and prices will be lower).

If you believe otherwise, show your reasoning and prove it.

EvE: Everyone vs Everyone

-RubyPorto

Jorma Morkkis
State War Academy
Caldari State
#826 - 2012-07-22 21:03:49 UTC
Pipa Porto wrote:
It reduces the value of their efficiency advantage, since the material cost will represent a smaller proportion of the invention dominated price (and prices will be lower).


Why only invention dominated prices?
Why it doesn't affect material costs for T2 BPO owners?
Pipa Porto
#827 - 2012-07-22 21:13:48 UTC  |  Edited by: Pipa Porto
Jorma Morkkis wrote:
Pipa Porto wrote:
It reduces the value of their efficiency advantage, since the material cost will represent a smaller proportion of the invention dominated price (and prices will be lower).


Why only invention dominated prices?
Why it doesn't affect material costs for T2 BPO owners?


The pricing of most T2 items is determined by invention costs. That's what it means for the price to be dominated by inventors.

It does, but since they use less, they get less benefit from material cost going down than inventors. Lower material prices reduce the difference in production costs between inventors and BPO owners. Since that difference is the entire economic value of a BPO, reducing the difference reduces the value of that BPO.

For items whose market is dominated by BPOs (the ****** ones that nobody would bother inventing in the first place because there's no demand), prices will simply drop and BPOs will loose a little bit of ground to inventors, since lower prices often leads to increased demand.

Jorma Morkkis wrote:
It will help T2 BPO owners more.

If you think Tech Alchemy helps BPO owners more than Inventors, please, show your reasoning.

EvE: Everyone vs Everyone

-RubyPorto

Jorma Morkkis
State War Academy
Caldari State
#828 - 2012-07-22 21:26:22 UTC
Pipa Porto wrote:
It does, but since they use less, they get less benefit from material cost going down than inventors. Lower material prices reduce the difference in production costs between inventors and BPO owners. Since that difference is the entire economic value of a BPO, reducing the difference reduces the value of that BPO.


Why you keep mentioning the cost of BPO on every post? Like it's very difficult to get billions for nullbears. For example there was one big alliance that got 15 trillion (or something like that) removed from them not that long ago.

If BPO owners need less materials / module or ship they will get really big bonus to their profit.
Pipa Porto
#829 - 2012-07-22 21:50:54 UTC
Jorma Morkkis wrote:
Pipa Porto wrote:
It does, but since they use less, they get less benefit from material cost going down than inventors. Lower material prices reduce the difference in production costs between inventors and BPO owners. Since that difference is the entire economic value of a BPO, reducing the difference reduces the value of that BPO.


Why you keep mentioning the cost of BPO on every post? Like it's very difficult to get billions for nullbears. For example there was one big alliance that got 15 trillion (or something like that) removed from them not that long ago.

If BPO owners need less materials / module or ship they will get really big bonus to their profit.


Because having lots of money doesn't mean you're stupid. Opportunity cost is opportunity cost no matter how much money you have.

BPO owners materials cost decreases, sure. But inventors material cost decreases more, shrinking the gap between BPOs and invention. Since that Gap is the entire value of the BPO, that means the BPOs are worth less than they were before.

In other words, the BPO owners cost to produce drops, but the price of the item drops by a larger amount (because the price is set by inventors), reducing the BPO's profits.

EvE: Everyone vs Everyone

-RubyPorto

Brewlar Kuvakei
Adeptio Gloriae
#830 - 2012-07-22 22:35:57 UTC  |  Edited by: Brewlar Kuvakei
The cost of obtaining a BPO was 0 isk to a couple of billion ISK in RP. Never forget this fact. If T2BPO's were introduced at the cost of billions of isk and were sold at a set rate by CCP there would be no complaints.

CCP has removed all worth out of the EVE economy by introducing items that are worth billions of ISK with out billions of isk worth of effort being expanded by the players.
Jorma Morkkis
State War Academy
Caldari State
#831 - 2012-07-22 22:39:59 UTC
Pipa Porto wrote:
In other words, the BPO owners cost to produce drops, but the price of the item drops by a larger amount (because the price is set by inventors), reducing the BPO's profits.


T2 invuls for 50k? Yeah, not going to happen.
Pipa Porto
#832 - 2012-07-22 22:52:45 UTC
Jorma Morkkis wrote:
Pipa Porto wrote:
In other words, the BPO owners cost to produce drops, but the price of the item drops by a larger amount (because the price is set by inventors), reducing the BPO's profits.


T2 invuls for 50k? Yeah, not going to happen.


What the hell are you talking about?

If you think that Tech alchemy will help BPO owners more than inventors, show exactly how.

EvE: Everyone vs Everyone

-RubyPorto

Pipa Porto
#833 - 2012-07-22 22:55:11 UTC
Brewlar Kuvakei wrote:
The cost of obtaining a BPO was 0 isk to a couple of billion ISK in RP. Never forget this fact. If T2BPO's were introduced at the cost of billions of isk and were sold at a set rate by CCP there would be no complaints.

CCP has removed all worth out of the EVE economy by introducing items that are worth billions of ISK with out billions of isk worth of effort being expanded by the players.


Then quit. Goodbye.

The lottery isn't relevant to the discussion of removing BPOs unless you have a time machine. They're commodities on the market just like any other, and they have a pretty terrible rate of return.

If you think they're overpowered now, put your money where your mouth is and Buy one to prove it. If you're still complaining about a game mechanic that stopped existing 5 YEARS ago, shut up and leave.

EvE: Everyone vs Everyone

-RubyPorto

Brewlar Kuvakei
Adeptio Gloriae
#834 - 2012-07-22 23:01:46 UTC  |  Edited by: Brewlar Kuvakei
Why is there a time limit on correcting an error? CCP was wrong about T2BPO's 5 years ago and they are wrong now. Fix the error or hear about it till EVE dies. Even if I do leave the game someone else will just notice the unavoidable problems about T2BPO's like all the anti T2BPO martyrs before me.

Well that is unless CCP start banning people again over their T2BPO stupidity. T2BPO threads have existed since T2BPO's were introduced and they will continue until T2 BPO's are removed or nerfed so that invention can under cut T2 BPO's in ME.

Remove T2BPO make EVE real.
Jorma Morkkis
State War Academy
Caldari State
#835 - 2012-07-22 23:05:00 UTC
Pipa Porto wrote:
What the hell are you talking about?


You mentioned that price of T2 modules/ships will drop a lot...

Pipa Porto wrote:
If you think that Tech alchemy will help BPO owners more than inventors, show exactly how.


First of all, you don't have to invent anything. That's already huge advantage.
Second, price of moon materials will drop noticeably. (Needed for T2 production).
Third, T2 BPO owners need less materials to produce T2 module/ship.
Akita T
Caldari Navy Volunteer Task Force
#836 - 2012-07-22 23:10:14 UTC
Brewlar Kuvakei wrote:
The cost of obtaining a BPO was 0 isk to a couple of billion ISK in RP. Never forget this fact.

Nobody is forgetting that. It is however wholly irrelevant at this point in time.
Also, you can bet your sweet behind that there have been at least 0.5 billion if not over 5 billion RP consumed in order to obtain those BPOs.
At a minimalistic rate of just 2k ISK per RP (most fields are worth noticeably more today), that's 1 trillion to 10 trillion ISK's worth if those RPs would have been carried over to this day, and actually a whole lot more if turned in near the start of invention. That's trillion with a T, not with a B.
And if you make the price conversion in terms of ISK-to-GTC back in the day, it's more like 5 to 50 trillion ISK. With a T.

Quote:
If T2BPO's were introduced at the cost of billions of isk and were sold at a set rate by CCP there would be no complaints.

Yes, there would be. PLENTY.
If limited amounts, what would have been the way to get one ? Accusation of favoritism for those NOT getting one in time. The main reason the lottery was scratched.
If NOT limited amounts, value would quickly drop below "new purchase" price (due to some people buying some for convenience and eventually selling them cheaper, with supply of BPOs over demand of BPOs) and invention would become POINTLESS, with T2 items selling for not much over manufacture cost plus minimal income over many years of ownership.

Quote:
CCP has removed all worth out of the EVE economy by introducing items that are worth billions of ISK with out billions of isk worth of effort being expanded by the players.

That line of reasoning is not really that accurate nor very useful. The economy works by a system of sinks and faucets of ISK combined with heavy-duty trading of goods. The amount of assets is almost completely decoupled from the amount of ISK in the economy at any given time.

Officer items worth trillions of ISK also keep being introduced without proportional effort being expended by the players - the effort is hardly much higher than hunting similar NPCs, but the reward is many orders of magnitude higher for the lucky few.
Tournament rewards also arguably sell for much over the likely expended effort.
Minerals, PI products and various other steady drops (other than officer loot) are "created" by expending some effort indeed, but most of them do not "eat up" much ISK to be generated, if they do, it's usually well under their value.

You should be far more worried about things like too rewarding L4 highsec missions or incursions, 0.0 NPC bounties, the ship insurance system, removing the drone poo drops with bounties, and so on ond so forth, which combined create way more ISK than it's being destroyed (to the tune of ONE TRILLION ISK PER DAY not so long ago, while less than a fifth is being taken out).
In the past 5 years since T2 BPOs have no longer been seeded, there has most likely been SEVERAL TIMES MORE ISK added to the EVE economy from various faucets unmatched by sinks than what the entirety of T2 BPOs are likely valued at NOWADAYS, let alone what they might have been valued at back 5 years ago, shortly after invention was introduced.
shar'ra matcevsovski
Doomheim
#837 - 2012-07-22 23:15:49 UTC
Brewlard’Arc wrote:
. Even if I do leave the game someone else will just notice the unavoidable problems about T2BPO's like all the anti T2BPO martyrs before me.


Do you know that this is not a movie and you are most certainly not a martyr? What is wrong with you poor manRoll

shar'ra phone home

Akita T
Caldari Navy Volunteer Task Force
#838 - 2012-07-22 23:19:28 UTC
Jorma Morkkis wrote:
Pipa Porto wrote:
If you think that Tech alchemy will help BPO owners more than inventors, show exactly how.

First of all, you don't have to invent anything. That's already huge advantage.
Second, price of moon materials will drop noticeably. (Needed for T2 production).
Third, T2 BPO owners need less materials to produce T2 module/ship.

Say a hypothetical T2 BPO can produce 100 units per month per blueprint, but with whatever's the optimal invention process for minimal cost you can only make 60 per manufacture line (up to 660 units per month per fully skilled manufacturer).
The current T2 BPO cost of one unit is 100 mil ISK (out of which 50 mil technetium), while the invented unit costs 160 mil ISK (out of which 70 mil technetium) and the market price is 170 mil ISK.
T2 BPO profit is 7 bil ISK/month, inventor profit per line is 0.6 bil, but can be scaled up to 6.6 bil ISK/month via multiple lines (and a lot more effort).
Now, technetium price gets slashed in half.
T2 BPO production costs fall to 75 mil ISK (out of which 25 mil tech) while invented units cost 125 mil ISK (35 mil technetium). The market price will most likely settle at around 135 mil ISK, maybe a tad bit higher.
T2 BPO profit is now 6 bil ISK/month (1 bil ISK less), while the inventor profit remains the same or even goes up a little bit.
Pipa Porto
#839 - 2012-07-22 23:19:53 UTC
Jorma Morkkis wrote:
Pipa Porto wrote:
What the hell are you talking about?


You mentioned that price of T2 modules/ships will drop a lot...

Pipa Porto wrote:
If you think that Tech alchemy will help BPO owners more than inventors, show exactly how.


First of all, you don't have to invent anything. That's already huge advantage.
Second, price of moon materials will drop noticeably. (Needed for T2 production).
Third, T2 BPO owners need less materials to produce T2 module/ship.


I said that the price would drop by a larger amount than the drop in the BPO owner's material's cost would drop. This is because the material costs of Inventors, who use more materials per run, will drop by a larger amount than the BPO owner's material costs will drop, and since inventors set the market, the price will drop by the amount that inventor's costs drop, not by the amount BPO owner's material costs drop.

Not having to invent is a convenience, since the invention costs are already figured into the final price, because supply is dominated by inventors. This is more than outweighed by the fact that a BPOs have a tiny production volume.
Yes, Tech prices will drop slightly (Akita T did an analysis in another thread). That will benefit Inventors more than it will benefit BPO owners.
Yes, they do, so material cost changes affect them less than Inventors. This means that they benefit less from material cost decreases than Inventors do.

EvE: Everyone vs Everyone

-RubyPorto

Jorma Morkkis
State War Academy
Caldari State
#840 - 2012-07-22 23:30:45 UTC
Akita T wrote:
The current T2 BPO cost of one unit is 100 mil ISK (out of which 50 mil technetium), while the invented unit costs 160 mil ISK (out of which 70 mil technetium) and the market price is 170 mil ISK.
T2 BPO profit is 7 bil ISK/month, inventor profit per line is 0.6 bil, but can be scaled up to 6.6 bil ISK/month via multiple lines (and a lot more effort).
Now, technetium price gets slashed in half.
T2 BPO production costs fall to 75 mil ISK (out of which 25 mil tech) while invented units cost 125 mil ISK (35 mil technetium). The market price will most likely settle at around 135 mil ISK, maybe a tad bit higher.
T2 BPO profit is now 6 bil ISK/month (1 bil ISK less), while the inventor profit remains the same or even goes up a little bit.


I already know profit for T2 BPO owner is bigger than for inventor.

T2 BPO profit will go up after the buff. It can't drop if production costs drop and everything else stays the same.