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Plex prices, economics and CCP's responsibility

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Orla- King-Griffin
#21 - 2014-04-18 19:25:59 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.


;lzj;kfeshlk;sdfj;lkhdshd\oids\fj
lkfgjklflkjvdx;idzop\sgma';lfkdj\[dflk
;lkiljhjlihohi'oioiuyuyinnnnnnnnnnnnnnnnnnnnnnnnn pop!
lkkjdhlglugulkglugligi;uiguoooooooooooooooooooooooooo?
kuhgffghfgkdygtkytdkkfddytk!

Of course, that's just my opinion.
the market will tell in the end.

Ah shite...
DaReaper
Net 7
Cannon.Fodder
#22 - 2014-04-18 19:26:41 UTC
Derath Ellecon wrote:
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.


When did CCP go public?



Before the large riots in 2011 there were articles that CCP was getting set to do an ipo. I know that when they do i'll buy shares. But I think that idea got curbed when they restructured.

OMG Comet Mining idea!!! Comet Mining!

Eve For life.
Tippia
Sunshine and Lollipops
#23 - 2014-04-18 19:32:34 UTC
Derath Ellecon wrote:
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.

When did CCP go public?

You don't have to be publically traded to have shares and shareholders.
DaReaper
Net 7
Cannon.Fodder
#24 - 2014-04-18 19:34:57 UTC
Two points:

1) CCP has zero control over in game plex prices. They are set by the players. This is essentially the first law of economics, supply and demand. The prices are rising because the demand is higher then the supply. This happens when people buy lots of plexes and hold them. Eventually the price will hit a point where joe blow who is sitting on hundreds of plexes will unload. Or someone with an American express black card wlll buy a boat load and cash them in. When that happens the price will crash. The other side of this, is the plex will eventually hit a price where players will go 'hell I am NOT paying that!' and then demand will drop. Then again the price will fall.

2) IF CCP was to do anything, the only logical thing to do is to break the plex - aurum converstion. That's it. Making it so you have Aurum for services, and plex for game time would be the other thing to force the prices to stop rising, but even THIS is not a sure fire way to stop the prices.

3) Doing #2 however is quite stupid. CCP wants revenue, they get it form subs, GTC sales, and microtranactions. Of the three the mico's are low. By offering plex for Aurum you give players who would otherwise not even bother with microtranaction stuff a chance to go 'you know what, I don't wan to spend $2 for a ship painting, I do however have 100b isk... I could get me 10 plex' and then buy a bunch of ship skins... yea I got no issues with that' This will cause people to buy MORE plex, thus more money for CCP.

In closing, everyone who is whining about plex prices either doesn't get econ 101, or are short sighted. Plex prices rising is a GOOD thing. More plex sales = more money for CCP = more devs = more fixed and new stuff. I just wish I would of turend my 20b I had 2 years ago into plex when they were wroth 500m... or my 10 billion when they were worth 300m.. oh well

OMG Comet Mining idea!!! Comet Mining!

Eve For life.
DaReaper
Net 7
Cannon.Fodder
#25 - 2014-04-18 19:38:12 UTC
Tippia wrote:
Derath Ellecon wrote:
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.

When did CCP go public?

You don't have to be publically traded to have shares and shareholders.


Right.

CCP took out a loan/got investors for WoD and Dust. You typically offer shares to someone who invest in your company. And with a bank, you could do the same, use shares as collateral. CCP has share holders, they tend to be Employees, both past and present, and Venture Capitalist who invest in the Company. But usually that's to the tune of millions.

OMG Comet Mining idea!!! Comet Mining!

Eve For life.
Derath Ellecon
University of Caille
Gallente Federation
#26 - 2014-04-18 19:39:25 UTC
Tippia wrote:
Derath Ellecon wrote:
El 1974 wrote:
CCP's responsibility is towards its shareholders first and those shareholders care about revenue.

When did CCP go public?

You don't have to be publically traded to have shares and shareholders.



While technically true, the idea of increasing quarterly revenues above all else mentality does not generally occur until companies become publicly traded.
Victor Andall
#27 - 2014-04-18 19:42:00 UTC
I read the title and just came here to say "No." before reading the OP.

DID I GET IT RIGHT?

I just undocked for the first time and someone challenged me to a duel. Wat do?

19.08.2014 - Dinsdale gets slammed by CCP Falcon. Never forget.
DaReaper
Net 7
Cannon.Fodder
#28 - 2014-04-18 19:42:17 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.



I'm very confused. Are you trying to say 'grrr plex prices too high grrr' or 'plexes is fine but server broken grr' or 'I have no idea what I am saying I just wanna grrr' You are kinda all over the place you know?

OMG Comet Mining idea!!! Comet Mining!

Eve For life.
Mara Pahrdi
The Order of Anoyia
#29 - 2014-04-18 20:13:02 UTC  |  Edited by: Mara Pahrdi
Tippia wrote:
I'm sorry, but I think the point got lost somewhere in the middle. Straight

That's a lot of understatement.

Remove standings and insurance.
Barbara Nichole
Royal Amarr Institute
Amarr Empire
#30 - 2014-04-19 04:53:14 UTC
why do I get the feeling the OP is rambling and addressing a post from some other forum?

  - remove the cloaked from local; free intel is the real problem, not  "afk" cloaking -

[IMG]http://i12.photobucket.com/albums/a208/DawnFrostbringer/consultsig.jpg[/IMG]
masternerdguy
Doomheim
#31 - 2014-04-19 05:38:19 UTC
Barbara Nichole wrote:
why do I get the feeling the OP is rambling and addressing a post from some other forum?


There was an "article" about this posted on EVENews24 I think that's what he is addressing.

Things are only impossible until they are not.
Malcanis
Vanishing Point.
The Initiative.
#32 - 2014-04-19 09:01:28 UTC
GUYS I WANT TO PLAY THIS GAME FOR FREE

BUT NOW I HAVE TO SPEND MORE TIME PLAYING THIS GAME IN ORDER TO PLAY FOR FREE

OBVIOUSLY I AM UNHAPPY ABOUT THIS

"Just remember later that I warned against any change to jump ranges or fatigue. You earned whats coming."

Grath Telkin, 11.10.2016
Solecist Project
#33 - 2014-04-19 09:07:54 UTC
Orla- King-Griffin wrote:
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.


;lzj;kfeshlk;sdfj;lkhdshd\oids\fj
lkfgjklflkjvdx;idzop\sgma';lfkdj\[dflk
;lkiljhjlihohi'oioiuyuyinnnnnnnnnnnnnnnnnnnnnnnnn pop!
lkkjdhlglugulkglugligi;uiguoooooooooooooooooooooooooo?
kuhgffghfgkdygtkytdkkfddytk!

Of course, that's just my opinion.
the market will tell in the end.

Wow! That's an awesome picture! :D

Are you a sister of Ralph??

That ringing in your ears you're experiencing right now is the last gasping breathe of a dying inner ear as it got thoroughly PULVERISED by the point roaring over your head at supersonic speeds. - Tippia
Salvos Rhoska
#34 - 2014-04-19 09:11:45 UTC
PLEX will be 1bil by end of summer.

Deal with it.

The slow creeping result of "Alticide".

PvE v PvP <> Old School Exploration <> CODE Licenses <> CODE Special Agent
Adunh Slavy
#35 - 2014-04-19 09:50:29 UTC
Stop using PLEX to pay for your Alt's game time, then you will have contributed your part to lowering PLEX prices.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt
March rabbit
Aliastra
Gallente Federation
#36 - 2014-04-19 13:19:24 UTC
DaReaper wrote:
Two points:

1) CCP has zero control over in game plex prices.

yea. CCP had never used PLEXes from banned accounts to stabilize market.
yea. CCP cannot just spam PLEX and/or ISK if they want to affect market

The Mittani: "the inappropriate drunked joke"
Nalelmir Ahashion
Industrial Management and Engineering
Mouth Trumpet Cavalry
#37 - 2014-04-19 14:53:45 UTC
DaReaper wrote:
The prices are rising because the demand is higher then the supply. This happens when people buy lots of plexes and hold them. Eventually the price will hit a point where joe blow who is sitting on hundreds of plexes will unload. Or someone with an American express black card wlll buy a boat load and cash them in. When that happens the price will crash. The other side of this, is the plex will eventually hit a price where players will go 'hell I am NOT paying that!' and then demand will drop. Then again the price will fall.



'dis

nuff said.

Also stop purchasing plex with all of the isk you made in the game :X purchase plex:
1. u need it for specific reason.
2. you got loads of isk unused in your wallet.
Serene Repose
#38 - 2014-04-19 23:01:28 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.
I am impressed, good sir. Quite so.

We must accommodate the idiocracy.
Barton Breau
University of Caille
Gallente Federation
#39 - 2014-04-20 02:35:22 UTC
Imo, once you catch yourself justifying things you dont like with stuff like "shareholder interests" or "its a business in the end", it is time to bail because you are acting stupidly.

Just saying.
DaReaper
Net 7
Cannon.Fodder
#40 - 2014-04-20 03:02:45 UTC
March rabbit wrote:
DaReaper wrote:
Two points:

1) CCP has zero control over in game plex prices.

yea. CCP had never used PLEXes from banned accounts to stabilize market.
yea. CCP cannot just spam PLEX and/or ISK if they want to affect market



I;m sure the 100 plex' reward is this. However, you have to ask yourself why would ccp want to lower plex prices at this time? As i said, that 750m isk is mighty appealing to some people, someone who maybe would not of bought a GTC otherwise could be looking at that price and going 'hmm if i bought 10 of them...' CCP forcing prices down.. doesn't really make sense. The reason the prices are rising is due to things being link to plex. Like ship painting, and its only goung to get worse.

OMG Comet Mining idea!!! Comet Mining!

Eve For life.