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Plex prices, economics and CCP's responsibility

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El 1974
Green Visstick High
#1 - 2014-04-18 11:07:22 UTC  |  Edited by: El 1974
Dirk MacGirk wrote a blog on Evenews24 which was mostly about Plex prices. A nice blog which contains several good ideas. I do however disagree about some of his assumptions.
CCP's responsibility is towards its shareholders first and those shareholders care about revenue. The problem with generating more revenue is that attrackting more players isn't going to work because CCP cannot accommodate them on their servers. Major battles can only accomodate so many players, Jita has been capped. There are only so much more PLEX and subscriptions CCP can sell in this single shard universe. Revenue growth has to come from selling additional services, not from making the game more attracktive.

In the mean time CCP is working on changing the game not just to improve it, but so players create less server load and spread them accross the universe: ships modified, now with less drones to do the same damage, new incentives introduced to spread industrial activity over the Universe and a buff to nullsec industry. A vision of a distant future where CCP gives us more 'space'.
I wouldn't be surprised if CCP were to buff Dreads as well. The largest battle in Eve took place on Serenity, not Tranquility. Not because Chinese servers are better, but the economy on Serenity makes them prefer Dreads which cause less server load than carriers.
Cpt Swagg
Federal Navy Academy
Gallente Federation
#2 - 2014-04-18 11:13:18 UTC
CCP responsibility LOL
Tippia
Sunshine and Lollipops
#3 - 2014-04-18 11:14:16 UTC
I'm sorry, but I think the point got lost somewhere in the middle. Straight

What difference do you think it makes whether people use PLEX or something else? Are you saying that they should care because those PLEXes open up the additional services you talk of?
Jarod Garamonde
Federal Navy Academy
Gallente Federation
#4 - 2014-04-18 11:14:37 UTC
El 1974 wrote:
The largest battle in Eve took place on Singularity, not Tranquility. Not because Chinese servers are better, but the economy on Singularity makes them prefer Dreads which cause less server load than carriers.



Mate, Singularity is the test server, not the Chinese server.

That moment when you realize the crazy lady with all the cats was right...

    [#savethelance]
Abrazzar
Vardaugas Family
#5 - 2014-04-18 11:15:19 UTC
.

There. Now this thread has a point.

Sovereignty and Population

New Mining Mechanics
Christopher AET
Federal Navy Academy
Gallente Federation
#6 - 2014-04-18 11:16:02 UTC
I am perfectly happy with rising plex prices, I often sell a couple each month to buff up my wallet.

I drain ducks of their moisture for sustenance.
El 1974
Green Visstick High
#7 - 2014-04-18 11:16:46 UTC
Jarod Garamonde wrote:
El 1974 wrote:
The largest battle in Eve took place on Singularity, not Tranquility. Not because Chinese servers are better, but the economy on Singularity makes them prefer Dreads which cause less server load than carriers.



Mate, Singularity is the test server, not the Chinese server.

Ok, tnx. Edited.
Scipio Artelius
Weaponised Vegemite
Flying Dangerous
#8 - 2014-04-18 11:17:12 UTC  |  Edited by: Scipio Artelius
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.

I partnered in a startup that has now grown into a successful business and can absolutely say that this focus on revenue first is not the reason to start or run a business.

It's an important part of remaining in business, but not the reason to run a business.

Running a business is about solving problems, offering worthwhile products and services, creating something great, meeting a need.

When we started a few years ago, revenue was a distant light that we figured we'd eventually reach, but was never the focus of what we did. These days I'm hands-off to prevent a conflict of interest, but as a shareholder in the company, the focus is still very much on quality products and service and solving the problems other people have.

Revenue, yeah it's good to have it, but certainly not the highest priority.

I don't think CCP is all that different (though larger than what our company is). The top management should be thinking strategically, with the financial health of the company being important.

But below that, I would almost bet my left one that the bulk of the organisation is more focused on delivering a good product.

As a result, customers are just as important as shareholders, just in a different way.
El 1974
Green Visstick High
#9 - 2014-04-18 11:44:25 UTC  |  Edited by: El 1974
Tippia wrote:
I'm sorry, but I think the point got lost somewhere in the middle. Straight

What difference do you think it makes whether people use PLEX or something else? Are you saying that they should care because those PLEXes open up the additional services you talk of?

Hmm. You may be right. That part of the story just makes the story more complicated. I will just edit that out. :p

Edit: that quote was unclear without context. 'anything else' in the quote ("CCP really shouldn’t care if you are using PLEX for game time or anything else") refers to using PLEX for other uses than gametime, not to using other forms of payment.
Marsha Mallow
#10 - 2014-04-18 18:04:02 UTC
Scipio Artelius wrote:
As a result, customers are just as important as shareholders, just in a different way.

Stakeholders is a reasonable term, and one CCP do indeed use from time to time.

OP - the article is good and raises some points for discussion which you haven't actually mentioned. I think there were 3 points that were summarised as possible CCP responses to Plex price increases. Regarding the servers, despite the overload in Jita and during fleet battles I'm pretty sure its nowhere near max capacity.

Ripard Teg > For the morons in the room:

Sweets > U can dd my face any day
Cygnet Lythanea
World Welfare Works Association
#11 - 2014-04-18 18:19:26 UTC
Marsha Mallow wrote:
Regarding the servers, despite the overload in Jita and during fleet battles I'm pretty sure its nowhere near max capacity.


Empire has has been smoking, according to one of the dev blogs a while back. While nullsec and lowsec might not be overloaded, Empire most certainly is.
Gogela
Epic Ganking Time
CODE.
#12 - 2014-04-18 18:21:56 UTC
CCP should get involved as little as possible in the actual gameplay on TQ. If they screw with the markets or PLEX prices the players are going to flip the f*** out. CCP involvement in the gameplay always pisses off the players. I think CCP understands that better than most players, in fact.

Signatures should be used responsibly...
Marsha Mallow
#13 - 2014-04-18 18:25:01 UTC
Cygnet Lythanea wrote:
Empire has has been smoking, according to one of the dev blogs a while back. While nullsec and lowsec might not be overloaded, Empire most certainly is.

It'll be in ashes soon, don't worry, everything is on schedule. Next expansion should be called "The Fall of Gomorrah" or something.

Ripard Teg > For the morons in the room:

Sweets > U can dd my face any day
Unsuccessful At Everything
The Troll Bridge
#14 - 2014-04-18 18:44:22 UTC
El 1974 wrote:
Dirk MacGirk wrote a blog on Evenews24 .....



Pretty much stopped reading right there.

You would have gotten better information from the crazy cat lady who lives under an overpass.

Since the cessation of their usefulness is imminent, may I appropriate your belongings?
BrundleMeth
State War Academy
Caldari State
#15 - 2014-04-18 18:54:08 UTC
Scipio Artelius wrote:
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.

I partnered in a startup that has now grown into a successful business and can absolutely say that this focus on revenue first is not the reason to start or run a business.

It's an important part of remaining in business, but not the reason to run a business.

Running a business is about solving problems, offering worthwhile products and services, creating something great, meeting a need.

When we started a few years ago, revenue was a distant light that we figured we'd eventually reach, but was never the focus of what we did. These days I'm hands-off to prevent a conflict of interest, but as a shareholder in the company, the focus is still very much on quality products and service and solving the problems other people have.

Revenue, yeah it's good to have it, but certainly not the highest priority.

I don't think CCP is all that different (though larger than what our company is). The top management should be thinking strategically, with the financial health of the company being important.

But below that, I would almost bet my left one that the bulk of the organisation is more focused on delivering a good product.

As a result, customers are just as important as shareholders, just in a different way.

Wow....

That is just not how it is. Business talks like thats how it it, but customers are nothing more than the means to an end. And employees? They are an expendable resource that is a necessary evil but nothing more. To be disposed of on a moments notice when the bottom line is threatened. I have seen it with my own eyes on several occassions.

The people who tell you "Our employees are our greatest asset" are nothing more than pure unadulterated liars. I am losing my job at the end of this year along with 100 others . From a company that had 20 Billion in revenue last year. This is the 4th time this has happened to me. Revenue is all that matters, nothing else...
Doc Fury
Furious Enterprises
#16 - 2014-04-18 18:56:45 UTC
El 1974 wrote:
Dirk MacGirk wrote a blog on Evenews24 which was mostly about Plex prices. A nice blog which contains several good ideas. I do however disagree about some of his assumptions.
CCP's responsibility is towards its shareholders first and those shareholders care about revenue. The problem with generating more revenue is that attrackting more players isn't going to work because CCP cannot accommodate them on their servers. Major battles can only accomodate so many players, Jita has been capped. There are only so much more PLEX and subscriptions CCP can sell in this single shard universe. Revenue growth has to come from selling additional services, not from making the game more attracktive.

In the mean time CCP is working on changing the game not just to improve it, but so players create less server load and spread them accross the universe: ships modified, now with less drones to do the same damage, new incentives introduced to spread industrial activity over the Universe and a buff to nullsec industry. A vision of a distant future where CCP gives us more 'space'.
I wouldn't be surprised if CCP were to buff Dreads as well. The largest battle in Eve took place on Serenity, not Tranquility. Not because Chinese servers are better, but the economy on Serenity makes them prefer Dreads which cause less server load than carriers.


Wat™?



Wat™ is brought to you by Jim Era

☼

There's a million angry citizens looking down their tubes..at me.
Derath Ellecon
University of Caille
Gallente Federation
#17 - 2014-04-18 19:00:43 UTC
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.


When did CCP go public?
Sarah McKnobbo
Sebiestor Tribe
Minmatar Republic
#18 - 2014-04-18 19:16:00 UTC
Unsuccessful At Everything wrote:
El 1974 wrote:
Dirk MacGirk wrote a blog on Evenews24 .....



Pretty much stopped reading right there.

You would have gotten better information from the crazy cat lady who lives under an overpass.


Took the words out of my post Big smile
PotatoOverdose
School of Applied Knowledge
Caldari State
#19 - 2014-04-18 19:16:10 UTC
CCP has no obligation to provide cheap plex. A wise test FC once said: "stop being poor." Words to live by. Cool
Domanique Altares
Rifterlings
#20 - 2014-04-18 19:20:02 UTC
My PLEX cost the same as always, excepting a sale now and then.
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