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Disconnect PLEX to AUR link, remove PLEX for OOG payments (use AUR)

First post
Author
Antihrist Pripravnik
Cultural Enrichment and Synergy of Diversity
Stain Neurodiverse Democracy
#1 - 2014-04-05 18:07:36 UTC  |  Edited by: Antihrist Pripravnik
Hello fellow capsuleers,

As you might already be aware, the PLEX market took a big hit recently and there is something that can be done to prevent it from happening again.

But first, let's clear something up:
I don't have anything against PLEX prices going up in a natural way. If it hits 1 bil and still can be afforded by those who extend their game time with PLEX, then it's totally fine. It means that the inflation is under control.

Now we can proceed with the currently available 1 year PLEX market history graph from Domain region (Amarr trade hub):
http://dl.eve-files.com/media/1404/2014.04.05.17.34.21.png

Having an external influence on the PLEX market can and will make the same results as when the ship skins are introduced. Whether PLEX prices are pumped by market manipulators or it's directly caused by the volume of bought skins is irrelevant.

What is relevant is that the connection between PLEX and AUR (as a premium currency) is causing this sudden jumps in price because:
- a part of the PLEX market will be subject to trading manipulation due to new items being introduced;
- PLEX prices will rise due to new items becoming available that can be bought by converting PLEX to AUR. To what extent will they rise depends on the interest in those items;
- a percentage of PLEX market that is used to buy cosmetics will increase hurting the part of the market that uses it for its originally intended purpose - adding 30 days of game time.

What we already have:
- AUR tokens can already be bough directly on your Account management page;
- AUR tokens can already be traded on the in-game market;
- AUR has it's own price and place on the market dictated by supply and demand.

Proposed changes:
- Remove the possibility to convert PLEX to AUR as it is already redundant and servers no purpose. It only creates damage;
- Use AUR as a premium currency for all out of the game events like "PLEX for good", buying Fanfest tickets,... and so on.

Desired effects
- A dedicated and independent PLEX market that is not directly affected by external factors such are charity drives, OOG events and introduction of new NeX store items;
- PLEX as a dedicated item for extending game time.
- PLEX market following the general inflation/deflation trends in the game making it more manageable for players that depend on PLEX as a mean of paying for the game.
- More vibrant AUR market.
- Easier management of charity drives as we would not need 3rd parties for "PLEX for good" program like we had the last time. Players can just donate any amount of AUR that they can afford without any need of a 3rd party.

What will not change if this goes through
- AUR <-> ISK connection will still exist;
- NeX store items can still be bought with ISK. You'll just need to buy AUR tokens on the market directly;
- OOG events can still be paid with ISK by buying AUR tokens instead of PLEX;


Please feel free to discuss potential downsides here.
Support this idea by hitting the "Like" button on the original post or by stating your support in the replies.

o/
HandelsPharmi
Pharmi on CharBazaar
#2 - 2014-04-05 19:20:25 UTC
I am missing the "dislike button"...
Daichi Yamato
Jabbersnarks and Wonderglass
#3 - 2014-04-05 20:30:09 UTC
if u can get more AUR per RL money through plexes than u can straight buying AUR, then thats not fun. but if they are equal, the answer should be to just advertise AUR more.

provided swapping AUR for isk is working fine and that AUR/RL money is equal through straight AUR purchases as it is to plexes, there shouldnt be a need to link AUR and PLEX. It shouldnt affect CCP's income as far as i can see.

it just comes down to a kick in the knackers to plex sellers, although if it was done, the plex should still be subject to normal supply and demand.

EVE FAQ "7.2 CAN I AVOID PVP COMPLETELY? No; there are no systems or locations in New Eden where PvP may be completely avoided"

Daichi Yamato's version of structure based decs

Catherine Laartii
Doomheim
#4 - 2014-04-05 21:09:02 UTC
+1. This is part of the reason why there was a Jita protest, and I'm still miffed they haven't removed the plex to aurum mechanic in the game. It drives up plex prices for no good reason; the two items are completely separate and should have nothing to do with each other.
Funless Saisima
School of Applied Knowledge
Caldari State
#5 - 2014-04-05 22:28:18 UTC
Plex has been high for a while. It's not because people are all of a sudden using aurum to buy fancy clothes or 3 ship skins.
Umbod Myrr
Republic Military School
Minmatar Republic
#6 - 2014-04-06 09:46:50 UTC
There are plenty of Aurum tokens already on the market. Isn't the problem more that they weren't all being sold at a reasonable rate comparable to what fraction of a PLEX they were?
Daichi Yamato
Jabbersnarks and Wonderglass
#7 - 2014-04-06 12:52:25 UTC
Umbod Myrr wrote:
There are plenty of Aurum tokens already on the market. Isn't the problem more that they weren't all being sold at a reasonable rate comparable to what fraction of a PLEX they were?


if thats really the case, then someone can use RL money to get AUR and then sell it on the market for mad isks. but if it turns out that AUR isnt in much demand this way, then the increase in plex price is not to do with AUR.

EVE FAQ "7.2 CAN I AVOID PVP COMPLETELY? No; there are no systems or locations in New Eden where PvP may be completely avoided"

Daichi Yamato's version of structure based decs

Antihrist Pripravnik
Cultural Enrichment and Synergy of Diversity
Stain Neurodiverse Democracy
#8 - 2014-04-12 14:47:53 UTC
Stabber skin released and more cruiser skins announced ... PLEX hit over 740 in Amarr today.

Like I said - it will happen every time.
Rainbow Dash
The Scope
Gallente Federation
#9 - 2014-04-12 16:20:20 UTC
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)
mynnna
State War Academy
Caldari State
#10 - 2014-04-12 16:34:45 UTC
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)

Because in theory there is a maximum price people would be willing to pay for their subscription to the game. On the other hand, exceed that, they quit, demand drops, prices drop, fewer plex being bought with real money.

Member of the Goonswarm Economic Warfare Cabal

HandelsPharmi
Pharmi on CharBazaar
#11 - 2014-04-12 16:47:11 UTC
If PLEX prices are to high, CCP started to sell the GTC / ETC cheaper.
Have seen PLEX at website of their partners for 31.49 $ instead of the ordinary 34.99 $ and even on other website you could get GTC for much less money.

I am talking about LEGAL website only!
Daichi Yamato
Jabbersnarks and Wonderglass
#12 - 2014-04-12 17:46:48 UTC
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)


some ppl would like the supply and demand of plex to be only influenced by the supply and demand of wanting to play the game, and other in game influences.

think about a person who pays for the game with isk. the cost of his game is going up because of the existence of vanity items and some out of game influences. a charity event comes along, he has to pay more for his game. a new skin is released, he has to pay more for his game. it could be argued it gives too much of a benefit to PLEX sellers.

if the OP's idea was implemented plex price would rise and fall more 'naturally' and as a result of in game influence only. where as AUR would become the main way to give to charity and get vanity items. ppl will still be able to use both AUR and PLEX to convert RL money into iskies, it merely separates the supply and demand of wanting to play the game and charity+vanity items.

i'd expect CCP's income would be completely unaffected as swapping RL money for AUR becomes the mainstream way to give to charity and to get vanity items. The only ppl adversely affected would be PLEX sellers, who can also start to sell AUR.

EVE FAQ "7.2 CAN I AVOID PVP COMPLETELY? No; there are no systems or locations in New Eden where PvP may be completely avoided"

Daichi Yamato's version of structure based decs

Imiarr Timshae
Funny Men In Funny Hats
#13 - 2014-04-12 18:53:57 UTC
mynnna wrote:
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)

Because in theory there is a maximum price people would be willing to pay for their subscription to the game. On the other hand, exceed that, they quit, demand drops, prices drop, fewer plex being bought with real money.


Personal experience would suggest it to be a very variable amount.

Of my associates :

2 quit when it hit 500m.
1 quit when it was around 600m.
3 quit when it hit 700m.

1 is currently in the process of quitting since he can't make enough to play Eve at current plex costs.

And around 7 more have spoken about leaving since they can no longer afford to play, buy a plex and then have ISK left over to buy new ships and so forth, if it passes 800-850m.

Those people directly told me they were leaving because they could not afford plex and would not subscribe because they didn't feel Eve is worth the subscription fees. Those players are by player, not account. For example the one currently quitting is desubbing 5 accounts.
NaK'Lin
Seamen Force
#14 - 2014-04-12 20:42:20 UTC
Imiarr Timshae wrote:
mynnna wrote:
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)

Because in theory there is a maximum price people would be willing to pay for their subscription to the game. On the other hand, exceed that, they quit, demand drops, prices drop, fewer plex being bought with real money.


Personal experience would suggest it to be a very variable amount.

Of my associates :

2 quit when it hit 500m.
1 quit when it was around 600m.
3 quit when it hit 700m.

1 is currently in the process of quitting since he can't make enough to play Eve at current plex costs.

And around 7 more have spoken about leaving since they can no longer afford to play, buy a plex and then have ISK left over to buy new ships and so forth, if it passes 800-850m.

Those people directly told me they were leaving because they could not afford plex and would not subscribe because they didn't feel Eve is worth the subscription fees. Those players are by player, not account. For example the one currently quitting is desubbing 5 accounts.


I can see where you are coming from, sure.
I do pay my accounts with ISK -> PLEX as well, and it costs me more now than it used to. Doesn't make me happy.

But ultimately, if i CAN'T pay the game with ISK / PLEX, I know I can with real cash.
And actually, "ral cash" isn't the "option". ISK -> PLEX is the "option", afaik. This is a subscription based game.

15 bananas / month... Affordable normal proper price for a game. This isn't F2P, and you and I have no "rights" to whatever "reasonable" price we'd wish there to be for PLEX. It's a bonus, which is nice.

My opinion. I only speak for myself in this matter.
But the thread sounded much like "QQ, i can't pay my game anymore and need to use cash".
Noone I know that pays with ISk has quit yet. Income is still comfortable.
Wafflehead
Garoun Investment Bank
Gallente Federation
#15 - 2014-04-12 21:22:25 UTC
Imiarr Timshae wrote:
mynnna wrote:
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)

Because in theory there is a maximum price people would be willing to pay for their subscription to the game. On the other hand, exceed that, they quit, demand drops, prices drop, fewer plex being bought with real money.


Personal experience would suggest it to be a very variable amount.

Of my associates :

2 quit when it hit 500m.
1 quit when it was around 600m.
3 quit when it hit 700m.

1 is currently in the process of quitting since he can't make enough to play Eve at current plex costs.

And around 7 more have spoken about leaving since they can no longer afford to play, buy a plex and then have ISK left over to buy new ships and so forth, if it passes 800-850m.

Those people directly told me they were leaving because they could not afford plex and would not subscribe because they didn't feel Eve is worth the subscription fees. Those players are by player, not account. For example the one currently quitting is desubbing 5 accounts.


One person has 5 accounts and still cannot make 28M per account per day??. Are you for real??.
If you cannot make enough ISK to sub your own account then your doing something wrong, even T1 manufacturing will earn you that!. There's lots of passive income sources!

-1
Rhnra Pahineh
Viziam
Amarr Empire
#16 - 2014-04-12 21:32:51 UTC
Wafflehead wrote:
Imiarr Timshae wrote:
mynnna wrote:
Rainbow Dash wrote:
Why is the price of Plex going up bad? That means I can get more isk when i buy plex, motivating me to buy more often. CCP selling more plex = CCP getting more money, = Eve being around longer. Plex prices rising are great, I hope they hit serenity levels (5b isk per plex)

Because in theory there is a maximum price people would be willing to pay for their subscription to the game. On the other hand, exceed that, they quit, demand drops, prices drop, fewer plex being bought with real money.


Personal experience would suggest it to be a very variable amount.

Of my associates :

2 quit when it hit 500m.
1 quit when it was around 600m.
3 quit when it hit 700m.

1 is currently in the process of quitting since he can't make enough to play Eve at current plex costs.

And around 7 more have spoken about leaving since they can no longer afford to play, buy a plex and then have ISK left over to buy new ships and so forth, if it passes 800-850m.

Those people directly told me they were leaving because they could not afford plex and would not subscribe because they didn't feel Eve is worth the subscription fees. Those players are by player, not account. For example the one currently quitting is desubbing 5 accounts.


One person has 5 accounts and still cannot make 28M per account per day??. Are you for real??.
If you cannot make enough ISK to sub your own account then your doing something wrong, even T1 manufacturing will earn you that!. There's lots of passive income sources!

-1

You are assuming that he should consider eve online as a job? Yeah, well, I have enough worry with of one job.
Daichi Yamato
Jabbersnarks and Wonderglass
#17 - 2014-04-12 22:14:34 UTC
Wafflehead wrote:


One person has 5 accounts and still cannot make 28M per account per day??. Are you for real??.
If you cannot make enough ISK to sub your own account then your doing something wrong, even T1 manufacturing will earn you that!. There's lots of passive income sources!

-1


for a new character, this means six hours of mining per day with no days off. if u dnt have SP and the capital to put down, 28mil isk/day of passive income is not at all realistic. and the reason one of my friends plexed before he left was because coming from a poorer country, paying the monthly subscription fee was nearly a weeks rent.

EVE FAQ "7.2 CAN I AVOID PVP COMPLETELY? No; there are no systems or locations in New Eden where PvP may be completely avoided"

Daichi Yamato's version of structure based decs

Kueyen
Angharradh's Aegis
#18 - 2014-04-12 22:37:51 UTC
Presume PLEX cannot be converted to AURUM (the OP's premise). The OP (and other proponents of decoupling) seem to be under the impression that a rising AURUM demand will then not result in a rise in in-game PLEX prices. They are wrong.

If AURUM demand rises (e.g. due to ship skinning), the ISK/AURUM rate will rise. Which means that the ISK/RLC [AU] rate (the ratio resulting from buying AURUM from CCP for real life currency, and selling it ingame for ISK) will rise. Eventually the ISK/RLC [AU] rate will rise above that of the ISK/RLC [PLEX] rate (the ratio resulting from buying GTCs from CCP or resellers, converting them to PLEX, and selling those ingame for ISK). At that point, the supply of PLEX will start to shrink, as people who want to obtain ISK for RLC (and they are the sole source of PLEX that are sold ingame) will do so by buying AURUM. This process continues until the ISK/PLEX rate has risen (and it will, because of diminished supply and constant demand) to the point where the ISK/RLC [PLEX] rate exceeds the ISK/RLC [AU] rate again, at which point people will start buying GTCs and selling PLEX again.

Naturally, this process works in reverse too, raising the ISK/RLC [AU] ratio until it equals the ISK/RLC [PLEX] ratio, meaning that the delay until the first time the ISK/RLC [AU] rate exceeds the ISK/RLC [PLEX] rate won't be nearly as long as the proponents of decoupling might hope.

tl;dr: as long as PLEX and AURUM can be bought for real life currency, and traded ingame for ISK, their in-game prices are beholden to the combined demand for AURUM and PLEX; it is impossible to decouple the in-game price of PLEX from the demand for AURUM even if no direct conversions between PLEX and AURUM are allowed.

(At the very most, you might introduce a delay to the coupling because of non-zero market reaction time and non-zero market inefficiency, and perhaps for a limited while because of existing stocks of PLEX and/or AURUM too. At the cost of a pissed-off market that continuously vaxillates between an under-supply and an over-supply of PLEX and AURUM.)

Until all are free...

Antihrist Pripravnik
Cultural Enrichment and Synergy of Diversity
Stain Neurodiverse Democracy
#19 - 2014-04-12 23:37:29 UTC
@Kueyen

So, if I got it right the price of PLEX and AUR will be connected by the decision of RL buyer which item to buy (whichever is more profitable ISK wise), thus limiting the supply periodically and rising/lowering the prices of PLEX and AUR accordingly.

In that case, you are correct. The risk of decoupling PLEX from AUR directly could produce a different environment, but the increased AUR demand will not in all cases stop the PLEX prices going up. The problem is then more suitable for a professional economist who has an internal insight of both markets, CCP Dr.EyjoG for example.
Alvatore DiMarco
Capricious Endeavours Ltd
#20 - 2014-04-12 23:58:03 UTC
I don't know about other people, but if you decouple PLEX and AUR, I'm going to completely ignore whichever one sells for less ISK. If PLEX becomes solely for extending subscription time and AUR takes over as the currency for everything else, that means AUR will be worth more and so I'll ignore PLEX.
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