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PLEX

Author
TriadSte
The Scope
Gallente Federation
#1 - 2012-11-20 16:47:48 UTC
What exactly is causing the demand for buyers? when they're spiking so high? I understand supply/demand but why is the demand so great right now with these horrible prices?

I personally think that at over 600 million now, is far too high. I remember moaning though when they were 380 million. I understand that you cant just dump these on the market and make the prices bomb but Id for sure like some market expert to drop by this thread and enlighten myself a mere market amateur as to what's driving the sales of these things.
Cipio Hakoke
Tactical Manufacturing Group
#2 - 2012-11-20 17:20:11 UTC
Well i can't speak to if the demand is so high atm, but as inflation occurs the prices will steadily rise. There was a big spike in plex a while ago when all the tourney people were buying up plex.
Bugsy VanHalen
Society of lost Souls
#3 - 2012-11-20 17:37:52 UTC
TriadSte wrote:
What exactly is causing the demand for buyers? when they're spiking so high? I understand supply/demand but why is the demand so great right now with these horrible prices?

I personally think that at over 600 million now, is far too high. I remember moaning though when they were 380 million. I understand that you cant just dump these on the market and make the prices bomb but Id for sure like some market expert to drop by this thread and enlighten myself a mere market amateur as to what's driving the sales of these things.


As far as demand goes. much of the world economy is still recovering from the big dive it took over the last few years. With many players having income reduced or expenses increased due to rising energy rates paying a subscription for a game is less of a priority for many players. If your choices are give up the game or spend isk on PLEX to keep playing what would you choose?

The fact that you are asking this question would seem to indicate you are or at least have considered paying for game time through isk for PLEX. You reasons for this are your own. Many other players are also looking in the same direction, which has lead to the increased demand.

In addition to this the rising PLEX prices have encouraged more players who do have disposable income to buy PLEX to sell in game for isk as the returns are much higher. I believe this has actually curbed the inflation of PLEX. Based strictly on demand it could be much higher.

Considering when PLEX was 380 mil trit was about 3.6. trit is now between 5.5 and 6. If you use trit as a base line for inflation. This is reasonable as it is the highest volume traded item on the market and is used in almost everything. 3.6isk/unit compared to say 5.6isk/unit now. the 380 mil for a PLEX with the same rate of inflation would be 591 mil. Considering that trit has come down. It was over 7 for quite a while which would have put PLEX at 750 mil with balanced inflation(which it never hit). I would say the current prices of PLEX are cheap compared to what it could be.

I will not be the least bit surprised if PLEX hits 1 bil by X-mas.
Harbingour
EVE Corporation 690846961
#4 - 2012-11-20 18:46:12 UTC  |  Edited by: Harbingour
Cipio Hakoke wrote:
Well i can't speak to if the demand is so high atm, but as inflation occurs the prices will steadily rise. There was a big spike in plex a while ago when all the tourney people were buying up plex.


Right now we really are in a bit of an information black out concerning the economy... last thing CCP semi officially said about the economy was in the CSM minutes where it was stated that there was actually a period of deflation in Eve ( PLEX was still inflating at this time though?!?! )

I think right after the last FW change to the summer of LP bonanza PLEX saw a drop of 40 million ISK but since they've held steady. If PLEX start rising again expect the NULL folks to blame HI SEC & scream for nerfs of all things in HI SEC without any factual basis of stats.

Only thing right now CCP can pull out to combat inflation if its really still unabaited is CCP Soundwave's threat for an across the board 10% bounties cut unless new sinks are introduced quickly. Expect the howels in the forums then to induce bleeding of the ears especially if we see repeat of how Incursions 10% cut decimated them. ( Interestingly enough it WAS NOT the 10% payout cut that stunted Incursion sites: it was a near doubling of rats eHP which caused tripling of time to complete the sites and Wall of OTAs... if the new AI causes a tripleing of time to complete missions like what happened with Incursions I predict a time of troubles & HI sec unsubs )
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
TriadSte
The Scope
Gallente Federation
#5 - 2012-11-20 19:54:17 UTC
I was one of those incursion runners who cried :P You are totally right though it was not the pay cut that did it it was the sheer HP of the rats etc.

What CCP dont seem to grasp is that I for one did it for the fleet working together side of things to learn about how fleets work how FCs work etc and it put me in good sted down in null. [i was a empire bear]

CCP should seriously step in and curb this inflation imo. If you corrolate the amount of isk you get for selling a plex then look at what things are actually worth its crazy.
Fractal Muse
Sebiestor Tribe
Minmatar Republic
#6 - 2012-11-20 20:01:40 UTC
Part of the price for PLEX is speculation.

A -lot- of people (for the supply of in-game PLEX that is) are / were using PLEX as an "investment" on the assumption that it will keep on rising.

PLEX prices have been dropping since midway through October so I think the PLEX market is breaking down.

PLEX cost almost 650 million midway through October. The current price is ~600 million.

PLEX prices are definitely dropping.
corestwo
Goonfleet Investment Banking
#7 - 2012-11-20 20:24:52 UTC  |  Edited by: corestwo
Harbingour wrote:


I think right after the last FW change to the summer of LP bonanza PLEX saw a drop of 40 million ISK but since they've held steady. If PLEX start rising again expect the NULL folks to blame HI SEC & scream for nerfs of all things in HI SEC without any factual basis of stats.

Funny you say that. I DO consider mackinaws in empire that make 14-18m/hr (more like 25+ when fleet boosted by an orca) to be a problem, a major contributing factor to why plexes are not falling in the wake of the FW nerf and even slowly continuing to rise. However, that's not necessarily a problem with high sec itself so much as it is the state CCP has left the mineral market in. If low end prices were "normal" - say, trit for 3.5, pyerite at 5, mex at 30 and isogen at 60 - then it would be more like 7-8m/hr, 11-13 with an orca booster, which is far more reasonable for an almost entirely afk activity.

Not that you'll acknowledge this, of course, as any and all nerfs to highsec are unwarranted, in your mind. Cool

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Minister Man
Brutor Tribe
Minmatar Republic
#8 - 2012-11-20 20:42:08 UTC
Mining doesn't inject isk into the game so does nothing to inflation rate at all.

The only way I can see a high return on mining affecting the price of plex would be people obtaining multiple accounts to run miners and thus requiring more plex to fund those accounts.

I am of the belief that plex prices are so high is due to speculators. People have invested a lot of money into plex, so they don't want to see the prices drop. So if they lose a 100 million here or there to keep the prices high it is acceptable to keep their 100b stockpile from dropping.
corestwo
Goonfleet Investment Banking
#9 - 2012-11-20 21:39:53 UTC
Minister Man wrote:
Mining doesn't inject isk into the game so does nothing to inflation rate at all.

Neither did FW and yet CCP themselves said that it was at least in part to blame for pushing PLEX prices. By now there's probably at least 500 trillion (half a quadrillion!) isk floating around the economy, but a lot of it is sitting there, unused. The actual amount that moves on a daily basis is perhaps 15-20 trillion. So, anything that encourages that to increase (such as FW) is basically as good as an actual faucet.

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Vaal Erit
Science and Trade Institute
Caldari State
#10 - 2012-11-21 00:04:14 UTC
Well this is awkward. CCP blamed FW for the rapid rise of PLEX and it has been 2 weeks and counting since the FW nerf and PLEX has been going up in price. Oops.

What will CCP blame it on next, Incursions again? Or maybe missions and afk mack ice mining are the culprit? Does CCP have the balls to go ahead with a 10% pay cut in all bounties? 700m per plex by years end?
corestwo
Goonfleet Investment Banking
#11 - 2012-11-21 00:40:22 UTC
Well to be fair...

Quote:
Although FW is not an isk faucet and does not generate any additional isk in the economy, the influx of cheap LP store items has caused a crash in the income of some mission runners and the concentration of wealth has contributed to the rising price of PLEX on the open market.



"Has contributed to" is not the same as "is the sole cause of".

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

The Chronophage
Garoun Investment Bank
Gallente Federation
#12 - 2012-11-21 00:48:20 UTC
Dave Stark
#13 - 2012-11-21 00:53:50 UTC
The Chronophage wrote:
http://eve-kill.net/?a=kill_detail&kll_id=15232210

This could also be contributing.


i'll see your obelisk and raise you this.
corestwo
Goonfleet Investment Banking
#14 - 2012-11-21 01:02:16 UTC
Kills like that are hilarious, but irrelevant. They're too rare to have a meaningful impact on prices at all.

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Vaerah Vahrokha
Vahrokh Consulting
#15 - 2012-11-21 01:35:29 UTC
Vaal Erit wrote:
Well this is awkward. CCP blamed FW for the rapid rise of PLEX and it has been 2 weeks and counting since the FW nerf and PLEX has been going up in price. Oops.

What will CCP blame it on next, Incursions again? Or maybe missions and afk mack ice mining are the culprit? Does CCP have the balls to go ahead with a 10% pay cut in all bounties? 700m per plex by years end?


CCP did not nerf FW because it caused inflation but because it was a monkey mode to get humongous amounts of ISK.
Mining does not compare, because:

- you need lots of accounts to make for *1* FW or pre-nerf incursion runner.

- look at ice prices, they tanked to super-low. Low end minerals are holding because high ends have tanked and because we are in a high demand period of the year (which also somewhat revitalized high ends).

What needs to be nerfed is real faucets and I am not sure hi sec L4 missions is as huge of the kind of that as the past.

Drone regions were an ultra-huge minerals faucet and almost halved low end minerals value till it got converted into ISK faucet.

Now, drone regions have joined the ISK faucets bandwagon, this will require an across the board nerf of a massive magnitude, which will have negative secondary consequences on many other mini-games.
Harbingour
EVE Corporation 690846961
#16 - 2012-11-21 02:17:30 UTC  |  Edited by: Harbingour
corestwo wrote:


Funny you say that. I DO consider mackinaws in empire that make 14-18m/hr (more like 25+ when fleet boosted by an orca) to be a problem, a major contributing factor to why plexes are not falling in the wake of the FW nerf and even slowly continuing to rise. However, that's not necessarily a problem with high sec itself so much as it is the state CCP has left the mineral market in. If low end prices were "normal" - say, trit for 3.5, pyerite at 5, mex at 30 and isogen at 60 - then it would be more like 7-8m/hr, 11-13 with an orca booster, which is far more reasonable for an almost entirely afk activity.

Not that you'll acknowledge this, of course, as any and all nerfs to highsec are unwarranted, in your mind. Cool


Well if the MACK yeids were doubled then I'd predict trit prices would fall closer to 4 ISK so instead of a nerf what we'd really need is a buff to equalize the prices .So I acknowlege the mineral prices you espouse but would like to see it thru a buff instead of a nerf Big smile

I dislike all nerfs & especially hated the NULL anom nerf which caused the flooding of NULL alts into Incursions.

NERFing is lazy designing & where in RL do we see nerfs? In RL you see weapon buffs... since when has say the attempts to nerf weapons worked: they all failed like laws to illegalize sawed off shot guns or belly bows !!!.
I laughed at the attempt to nerf North Korea's nuclear weapon ambitions & predict Iran too will obtain nukes no matter what Isreal does.
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Harbingour
EVE Corporation 690846961
#17 - 2012-11-21 02:21:59 UTC  |  Edited by: Harbingour
Vaal Erit wrote:
Well this is awkward. CCP blamed FW for the rapid rise of PLEX and it has been 2 weeks and counting since the FW nerf and PLEX has been going up in price. Oops.


Incorrect PLEX price spiked to about 650 million until the surprise speed up of the Incursion nerf now we're at a shade under 600 million ISK. Price of PLEX after the Escalation nerf did not fall as drastically ( as a matter of fact PLEX had been falling in the weeks right before Escalation's nerf of Incursions )
Right now though PLEX seems to have stabilized at ~600 million
Quote:
What will CCP blame it on next, Incursions again? Or maybe missions and afk mack ice mining are the culprit? Does CCP have the balls to go ahead with a 10% pay cut in all bounties? 700m per plex by years end?


It'd be tuff to blame Incursions. I'm willing to bet per month ISK faucet fell 70-85%.

I am curious how much more profitable mining is for miners... I doubt anything in the range of FW farmers before: How many hours does it take a Veldspar miner to make a PLEX @ 600 million ISK? It took FW farmers what 3 hours?
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
GreenSeed
#18 - 2012-11-21 03:22:20 UTC  |  Edited by: GreenSeed
whats so surprising about it?

its like asking why, if prices on water skyrocket for whatever reason, people would still consume it. plex is not something you can replace with something else, most plex buyers MUST consume that plex. the price point is really the point were people cancel the subscription.

plex consumers will keep buying that plex regardless of the price, its the plex sellers the ones that are self-destructive, because once the buyers cancel the subscription plex will become a luxury item that single account superheroes will use seldomly if they have the spare isk for it.

personally, we shouldn't be asking why are people buying so high, but mainly why aren't more individual plex sellers buying plex with irl money to sell in the market?. and by individual plex sellers im talking about the low/null pvper who allegedly shouldn't be bothering with menial tasks like "mining ISK".

if they don't buy plex to re-sell, and we have to rely on the highsec noob who wants to fly an overpriced, overtanked deadspace battleship on a Lvl4 for our plex supply, then the whole plex model needs to be revisited. since it was supposed to be a game monetization model based around individual sellers, not on plex flippers who will only raise the price until they kill the market.

either making isk should be overall harder to make people consider plex a isk source, or we need additional sources of plex.
corestwo
Goonfleet Investment Banking
#19 - 2012-11-21 04:52:33 UTC  |  Edited by: corestwo
Harbingour wrote:
corestwo wrote:


Funny you say that. I DO consider mackinaws in empire that make 14-18m/hr (more like 25+ when fleet boosted by an orca) to be a problem, a major contributing factor to why plexes are not falling in the wake of the FW nerf and even slowly continuing to rise. However, that's not necessarily a problem with high sec itself so much as it is the state CCP has left the mineral market in. If low end prices were "normal" - say, trit for 3.5, pyerite at 5, mex at 30 and isogen at 60 - then it would be more like 7-8m/hr, 11-13 with an orca booster, which is far more reasonable for an almost entirely afk activity.

Not that you'll acknowledge this, of course, as any and all nerfs to highsec are unwarranted, in your mind. Cool


Well if the MACK yeids were doubled then I'd predict trit prices would fall closer to 4 ISK so instead of a nerf what we'd really need is a buff to equalize the prices .So I acknowlege the mineral prices you espouse but would like to see it thru a buff instead of a nerf Big smile

I dislike all nerfs & especially hated the NULL anom nerf which caused the flooding of NULL alts into Incursions.

NERFing is lazy designing & where in RL do we see nerfs? In RL you see weapon buffs... since when has say the attempts to nerf weapons worked: they all failed like laws to illegalize sawed off shot guns or belly bows !!!.
I laughed at the attempt to nerf North Korea's nuclear weapon ambitions & predict Iran too will obtain nukes no matter what Isreal does.


Yes of course. The current and wildly outlandish isk/hr you can get in highsec is, because it's currently how it is, how it always should be, and so we should seek to keep it in place even while reducing mineral prices.

Yeah, no. If CCP screws up and makes something ridiculously out of line, returning it to the normal it "should" be at is not a nerf, no matter how much players like to label it as such. This is why the faction warfare "nerfs" weren't really nerfs. That's what CCP did with mineral prices - they attempted to fix high ends (by removing the drone alloys) and screwed up (by not realizing that the drone regions produced even more low ends than high ends). That's why highsec mining is currently as stupidly lucrative as it is, and attempts to fix that should not leave it as lucrative as it is.

Harbingour wrote:

It'd be tuff to blame Incursions. I'm willing to bet per month ISK faucet fell 70-85%.

I sure hope that you mean the faucet only from incursions and not the total faucet here. Because if you mean the total faucet, then uh...lets just say you're wrong. Very, very wrong.

This post was crafted by a member of the GoonSwarm Federation Economic Cabal, the foremost authority on Eve: Online economics and gameplay.

fofofo

Mara Rinn
Cosmic Goo Convertor
#20 - 2012-11-21 06:06:27 UTC
corestwo wrote:
Kills like that are hilarious, but irrelevant. They're too rare to have a meaningful impact on prices at all.


I beg to differ. But then I speculatively trade and haul PLEX, so my perspective on the matter is different to someone who doesn't trade PLEX at all. The hundreds of PLEX bought for the alliance tournament impacted the market even if only psychologically: traders raised the prices in anticipation of huge demand. The prices of PLEX start falling the moment the special PLEX offers show up on the login screen ads.

I am eternally thankful tht the people selling PLEX are keen to get a cash injection as quickly as possible. I am eternally grateful that the people scraping ISK together from month to month aren't willing to post a buy order. Because of the hand-to-mouth mentality of PLEX sellers and account PLEXers, speculators such as myself are guaranteed to make a profit by buying low, selling high. Thus the PLEXers are always buying from speculators' sell orders, the PLEX sellers are always selling to buy orders.

The moment the PLEXers start getting wise and posting buy orders a day or two before their accounts are due, the moment PLEX sellers start posting sell orders and waiting ENTIRE HOURS for the PLEX to sell, the speculating game is over.

But while there are people hauling dozens of PLEX in industrials (or taking their PLEX to market in ships flown by faction warfare characters, through FW systems) I know my ISK is safe in the PLEX Market.

I'm flying my hauler full of PLEX around, humming Sweet Home Alabama, praying to Barnum and Murphy.
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