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How does CCP take control of in- and deflation?

Author
Adunh Slavy
#41 - 2014-06-25 21:49:00 UTC  |  Edited by: Adunh Slavy
Jurik McMoney wrote:

Now it would be nice to know how much ISK CCP puts into the game and off the game. It is kinda hard to believe that the community generates more ISK with npc pirate bounty and mission rewards than it destroys with all the other points from the other list.

....

Well - I used google and didn't find any information about what I asked. There were no information about if they change any spawn rates of NPCs or if they do something else to work against inflation.



Watch the most recent econ presentation from fanfest, pay attention to the graphs. Previous fanfest econ presentations also provide some net flow numbers.

Sinks and faucets have been adjusted over the years, you just have to dig a bit in dev blogs to find the information, you'll excuse me if I do not do the work for you.

Necessity is the plea for every infringement of human freedom. It is the argument of tyrants; it is the creed of slaves.  - William Pitt

Tippia
Sunshine and Lollipops
#42 - 2014-06-25 23:27:47 UTC
KaarBaak wrote:
**more on topic:
Quote:
A net value of around 20-25 trillion ISK is reportedly injected into the game each month, a level that Dr Eyjo insists isn't enough to cause any inflationary problems in the economy.

In fact, that's a whole lot less than it used to be. Not long ago, we saw a net injection of around 30 trillion ISK a month. If it's gone down to just 20 or 25, it certainly helps explain why we've gone into a period of deflation.
Lugia3
Federal Navy Academy
Gallente Federation
#43 - 2014-06-26 01:45:45 UTC  |  Edited by: Lugia3
Serene Repose wrote:
Punitively fining "pirates" in high sec would be a GREAT ISK sink! Yay! Fatally fine the pirates!


Ugh

Define pirate. A pirate is someone who ransoms people for ISK, such as myself.

Fining us in highsec, as well as making us kill-on-sight (which we already are), for playing the game in lowsec? There is one fatal flaw in your plan. Alts. I already use an alt to buy ships for me. If I need to move a ship through highsec to another lowsec pocket, but I would be fined if I tried to, I would just put it in my carrier and suitcase it over.

If you're talking about gankers, which are not pirates, then your plan is still flawed. True gankers are already alts and -10. Fining them until their wallet goes negative would serve no purpose, as their other hauler alt would buy the ships for them and trade them over. If you disable ship trading to "pirates", the hauler alt would just park an Orca in a safespot and launch destroyers for the ganking alt to board.

In short, that was the stupidest idea I have ever heard. Everyone in this thread is now dumber for having read it. May Bob the wormhole god have mercy on your soul.

"CCP Dolan is full of shit." - CCP Bettik

Riot Girl
You'll Cowards Don't Even Smoke Crack
#44 - 2014-06-26 04:32:13 UTC
Jurik McMoney wrote:
Because all the prices and rewards are static, CCP can't setup anything to work against inflation or deflation. Or am I wrong?

Yeah, you're wrong. CCP can create inflation or deflation by adjusting the availability of mineral resources.
Nevyn Auscent
Broke Sauce
#45 - 2014-06-26 06:17:28 UTC
Riot Girl wrote:

Yeah, you're wrong. CCP can create inflation or deflation by adjusting the availability of mineral resources.

Except that has nothing to do with inflation or deflation.
Refer to my earlier post about misunderstanding inflation as opposed to supply & demand.

TLDR Version, No, you are wrong.
Mithandra
B.O.P Supplication For Glorious
Dracarys.
#46 - 2014-06-26 10:45:40 UTC  |  Edited by: Mithandra
Nevyn Auscent wrote:
Riot Girl wrote:

Yeah, you're wrong. CCP can create inflation or deflation by adjusting the availability of mineral resources.

Except that has nothing to do with inflation or deflation.
Refer to my earlier post about misunderstanding inflation as opposed to supply & demand.

TLDR Version, No, you are wrong.


Hang on what now?

Supply, demand and confidence are at the root of inflation. High demand , low supply pushes up what people will pay for an item , therefore making it cost more. ergo the price inflates.

When this happens on a broad front across the economy you get inflation

Low demand, high supply leads to merchants falling over themselves to sell their goods, thereby competing with each other, and the price people are willing to pay, ergo the price deflates.

When this happens on a broad front across the economy you get deflation.


messing around with mineral resources can lead to inflation or deflation.

Anything else is semantics

Eve is the dark haired, totally hot emo gothchild of the gaming community

Vincent Athena
Photosynth
#47 - 2014-06-26 15:21:42 UTC
Jurik McMoney wrote:
VonCricer wrote:
I do not believe Plex takes isk out of the game, it is a net 0 effect.


Of course it takes money out of the game. CCP wants 600M or something from you for a plex. That means that CCP takes 600M out of the game.

Not going to read the entire thread, so someone most likely already said this:
When you buy a PLEX for ISK, you buy it from another player, so the ISK stays in the game. The only ISK that leaves is the sales tax and the broker's fee. CCP does not sell PLEX for ISK, they only sell them for real money.

As for controlling inflation: Bounty and mission payouts are fixed. If manufactured goods inflate in price, then players will migrate from missions to mining and manufacturing for their ISK making activities. The result: less ISK enters the game and inflation is controlled. If the price of manufactured goods drops, fewer people will make stuff and instead run missions. This controls de-flation.

Thus, the game is self-regulating. CCP has done a few things to reduce ISK growth: They once increased sales tax. And at one point they reduced the number and quality of anomalies that appear in null sec.

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polly papercut
Royal Amarr Institute
Amarr Empire
#48 - 2014-06-26 17:20:40 UTC
Plex prices going any higher than they currently are will have a huge downward spiral on this game.
Imo it is almost at a breaking point now. I know the population changes seasonally but I feel I am seeing less players online than ever before.

I play late night est (past 12am) and recently I have seen the numbers of online people as low at 17,000. In the almost 5 years on playing EVE I can not remember seeing numbers this low. The few times I log on during the day and correct me if I am wrong here but I rarely see numbers over 40,000. I can remember seeing upwards of 27-28k overnight and high 40s low 50s in prime time.

Minus some special event like EVE's tenth year anniversary and people wanting there name on the monument when numbers spiked a few times, I feel the over all online user total has somewhat decreased.
Now how much of it can you attribute to plex prices being up is hard to calculate.
BUT I can say for certain it has had an effect I know I personally have gone from 4 accounts to 2 as a direct result of higher plex prices. I also have some rl friends who have dropped 1-2 accounts also based on plex prices.

While it is a very small research group as I do not have access to how many accounts are active or inactive I know of 15 accounts that have gone inactive as a direct result of higher plex prices. As plex prices skyrocket one could only assume more and more people will drop alt accounts. Now of course this is all speculation based on personal experience and observation of a small group of people but it is not hard to imagine others doing the same thing and dropping accounts.

For me personally plex is just about at a breaking point if it goes up much higher I will not be able to maintain my play style and will have to drop my second account that would lead to me dropping both accounts as playing EVE with only one account just doesn't work for me.
Sure I could spend the RL cash and while I like EVE it isn't worth the 30 a month to me I would rather go out for a drink one more time a month then spend the money on a game.

Now again I am not well versed in economics but I am sure there is some kind of ratio someone could figure out between isk per hour and the cost of plex. As CCP tries to find ways to create isk sinks and nerf Isk faucets all while plex prices continue to inflate this assumed ratio goes up. That is a very bad thing for people who pay with plex.
I feel there will be a breaking point a bubble if you will that will burst and something is going to have to change.

Just my 2.5 cents
Riot Girl
You'll Cowards Don't Even Smoke Crack
#49 - 2014-06-26 18:38:03 UTC
Mithandra wrote:
Nevyn Auscent wrote:
Riot Girl wrote:

Yeah, you're wrong. CCP can create inflation or deflation by adjusting the availability of mineral resources.

Except that has nothing to do with inflation or deflation.
Refer to my earlier post about misunderstanding inflation as opposed to supply & demand.

TLDR Version, No, you are wrong.


Hang on what now?

Supply, demand and confidence are at the root of inflation. High demand , low supply pushes up what people will pay for an item , therefore making it cost more. ergo the price inflates.

When this happens on a broad front across the economy you get inflation

Low demand, high supply leads to merchants falling over themselves to sell their goods, thereby competing with each other, and the price people are willing to pay, ergo the price deflates.

When this happens on a broad front across the economy you get deflation.


messing around with mineral resources can lead to inflation or deflation.

Anything else is semantics

Basically.
Riot Girl
You'll Cowards Don't Even Smoke Crack
#50 - 2014-06-26 18:41:51 UTC
polly papercut wrote:
For me personally plex is just about at a breaking point if it goes up much higher I will not be able to maintain my play style and will have to drop my second account that would lead to me dropping both accounts as playing EVE with only one account just doesn't work for me.

For PvE playstyles, inflation is countered by power creep. It doesn't really conform with CCP's 'anti-power creep' stance, but it's what they're doing anyway.
Riot Girl
You'll Cowards Don't Even Smoke Crack
#51 - 2014-06-26 18:47:14 UTC
Also removing faction standings losses from missions would help protect mission runners from inflation issues, which I expect to happen probably soon.
polly papercut
Royal Amarr Institute
Amarr Empire
#52 - 2014-06-26 19:24:31 UTC
Riot Girl wrote:

For PvE playstyles, inflation is countered by power creep. It doesn't really conform with CCP's 'anti-power creep' stance, but it's what they're doing anyway.


Except I play both styles I live in deep null so not only do I have to pay for plex I have to fund PVP as well.
While my mains are in a good size alliance SRP is only offered for official fleets with proper fc's. This is a problem when I go to chase away the people who are roaming my system. Sometimes I win sometimes I lose but those losses need to be covered by me.

Also if I just want to go and roam and get some kills on my own again this is at my expense.
So being as I have a real life and I like to game at what point do I stop borrowing time from real life to spend the extra time it now takes to cover the inflated cost of plex?
Every time plex goes up means more game time that is required to earn more isk to maintain play style and truth be told I am having to not only borrow from my real life time but also my pvp time.

Tau Cabalander
Retirement Retreat
Working Stiffs
#53 - 2014-06-26 19:59:25 UTC  |  Edited by: Tau Cabalander
A few changes that I can think of that CCP has done:
* Increased base transaction tax from 1% to 1.5% (Inferno 1.0)
* Reduced NPC bounties [ESS] (Rubicon 1.1)
* Reduced clone costs by 30% (Odyssey 1.0).
* Reduced insurance payouts (Tyrannis 1.0).
* Increased prices of NPC goods (BPO, etc.)
* Added drone bounties.
* Overhauled the bounty system (Retribution 1.0)

I'm sure there are others I've missed.
Kristalll
Caldari Provisions
Caldari State
#54 - 2014-06-26 20:04:06 UTC
Jurik McMoney wrote:
VonCricer wrote:
I do not believe Plex takes isk out of the game, it is a net 0 effect.


Of course it takes money out of the game. CCP wants 600M or something from you for a plex. That means that CCP takes 600M out of the game.


Um, players sell plex....

CCP doesn't sell plex for ISK.


Player buys plex with dollars and sells it ingame for ISK.

Player 2 redeems plex for game time.

The ISK just goes from one player to another.

All CCP did was sell gametime for real money.

“Die trying” is the proudest human thing.

Kristalll
Caldari Provisions
Caldari State
#55 - 2014-06-26 20:06:09 UTC
De'Veldrin wrote:
Omar Alharazaad wrote:
wait, what? CCP isn't the one taking the 600+m for your plex, it's another player. Bartender, I'll have what he's having... make it a double.


Not always.

CCP keeps a pretty close eye on the rate at which PLEX prices change, and they have been known to sell plex directly in game themselves to control that rate of change*. In that case, the money goes into some CCP vault as is not returned to the economy like it would be if the purchase was made from another player.


*Note: It's my understanding that it's the rate of change of the price (Δp) that CCP cares about, not necessarily the actual in game price (p).


Except CCP has said that plex is all funded off banned accounts. They have never GENERATED plex to sell you. Only put existing locked plex onto the market.

“Die trying” is the proudest human thing.

Tau Cabalander
Retirement Retreat
Working Stiffs
#56 - 2014-06-26 20:12:56 UTC
Kristalll wrote:
Except CCP has said that plex is all funded off banned accounts. They have never GENERATED plex to sell you. Only put existing locked plex onto the market.

I seem to recall that the amount of _all_ outstanding PLEX appears on CCP's annual financial report, as it is a liability.
Vincent Athena
Photosynth
#57 - 2014-06-26 20:21:41 UTC  |  Edited by: Vincent Athena
Kristalll wrote:
De'Veldrin wrote:
Omar Alharazaad wrote:
wait, what? CCP isn't the one taking the 600+m for your plex, it's another player. Bartender, I'll have what he's having... make it a double.


Not always.

CCP keeps a pretty close eye on the rate at which PLEX prices change, and they have been known to sell plex directly in game themselves to control that rate of change*. In that case, the money goes into some CCP vault as is not returned to the economy like it would be if the purchase was made from another player.


*Note: It's my understanding that it's the rate of change of the price (Δp) that CCP cares about, not necessarily the actual in game price (p).


Except CCP has said that plex is all funded off banned accounts. They have never GENERATED plex to sell you. Only put existing locked plex onto the market.

On top of that, my guess is any ISK generated from sale of PLEX confiscated from a banned account goes right back into that same account. That way if the account somehow gets un-banned, the player still has value for their assets.

This also brings up the question if ISK in inactive accounts should be considered a sink. At present, CCP does not, as an inactive account could become re-activated, allowing that ISK to be circulated. But from a practical standpoint, any ISK sitting in an inactive account cannot be used to buy anything, and hence is not affecting the economy. For all practical purposes, it's been removed from the game. If ISK in accounts that become inactive was counted as a sink, and ISK in re-activatred accounts was counted as a source, we may see something interesting.

CCP does remove ISK derived from RMT and botting. That surely should be considered a sink. As I recall, it's a big number.

Edit: CCP had also said they have no idea what the "right" price for a PLEX is. on Serenity (the Chinese server) it's presently around 3 billion ISK. CCP seems willing to let the players and the free market determine the PLEX price, so long as the changes are slow.

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Gully Alex Foyle
The Scope
Gallente Federation
#58 - 2014-06-26 20:24:31 UTC
polly papercut wrote:
Sure I could spend the RL cash and while I like EVE it isn't worth the 30 a month to me I would rather go out for a drink one more time a month then spend the money on a game.
Sorry if you can't play for free anymore. Bye.


On a side note, it would suck if the PLEX mechanic jammed because of player price speculation. Maybe CCP could consider putting a time limit on PLEXs, to prevent hoarding?

I love the player driven market, but PLEX speculation may have nasty out-of-game effects.

Make space glamorous! Is EVE dying or not? Ask the EVE-O Death-o-meter!

polly papercut
Royal Amarr Institute
Amarr Empire
#59 - 2014-06-26 21:15:45 UTC  |  Edited by: polly papercut
Gully Alex Foyle wrote:
polly papercut wrote:
Sure I could spend the RL cash and while I like EVE it isn't worth the 30 a month to me I would rather go out for a drink one more time a month then spend the money on a game.
Sorry if you can't play for free anymore. Bye.


On a side note, it would suck if the PLEX mechanic jammed because of player price speculation. Maybe CCP could consider putting a time limit on PLEXs, to prevent hoarding?

I love the player driven market, but PLEX speculation may have nasty out-of-game effects.


It's not that I can't it's I choose not to. I could earn a plex in a few hours, do not be upset that you are unable to do that same and make stupid statements like
Gully Alex Foyle wrote:
Sorry if you can't play for free anymore. Bye.

People who are playing via plex are doing so because EVE is not worth the real world money to play. SO when these people are unable to play the game via plex and they choose not to continue to buy plex and cancel accounts, that leads to less money for CCP and that leads to CCP dev lay offs.

EVE is a good game for what it is but the reason CCP offers PLEX is to subsidize their business because without people using plex to pay for accounts you would have a lot less players and less money coming in.
If anything us players who play the game by using plex are doing more good for the game than the ones who are paying a monthly fee.

Every Month I plex an account that is $20 to your $15 or less depending on how you pay 1mo , 3 mo ect.
So it would be a very bad idea to lose out on the accounts supported by plex. But like always most EVE players are to consumed with "their game" to even listen to facts about what is going wrong in the game.
Players like you can not stand when anyone says something negative about their game so they come and make stupid remarks.

Bottom line is when plex prices become to high to be a feasible means to pay for accounts CCP will lose money.
There are guys with 50-100 accounts you can bet your ass they are plexing those accounts.
And say I do choose to play the game paying RL money I would do so paying on a yearly plan.

So let's reflect just on me alone I went from 4 accounts plexing down to 2 that used to make CCP $ 960 yearly just from me.
Now I am down to 2 accounts and I start paying $131.40 so a yearly plan for two account that is a yearly loss of $697.20 USD.

Now lets just take a hypothetical situation let's say the entire eve player base is online at this moment that is 32,227 pilots online right now and let's call that every active account in EVE and let's say 5% of those people go the route I am going they drop down to two accounts they used to plex 4 and now they are just paying a yearly $131.40 for two accounts. CCP will then lose $112,493.00 yearly . Now we all know EVE has more then 32k accounts and it is pretty safe to assume more than 5% of those people plex.

Let's take an other hypothetical situation using some real numbers for a moment.
EVE had 500,000 active subs at it's peak. no w for the hypothetical part as I could find no hard numbers on this but let's say 15% of those accounts are plexed. We come up with 75,000 accounts now let's say half of them stopped plexing and went for the $15 monthly option and we will give the benefit of the doubt that not a single person quit EVE over this CCP will still lose $187,500 a year.

Now let's not be hypothetical at all and look at http://nerdsoliloquy.blogspot.co.nz/2014/05/eve-online-may-have-experienced-its.html we can also look at CCP lay offs and see a downward trend. Companies who are making profits do not lay off 20% of it's work force. Also all of the people who left CCP to go to other companies.

CCP needs plex and they need to make sure it remains a viable way for people like me to continue to make them money.
Gully Alex Foyle
The Scope
Gallente Federation
#60 - 2014-06-26 21:37:22 UTC
polly papercut wrote:
EVE is dying, only I can save it, but I don't want to have to grind too much even though I easily make 700 Mil ISK in a few hours.
I disagree.

But there's an easy way for you to prove me wrong: unsub all your accounts, then check back in 2 years if the rest of us are still playing.

Make space glamorous! Is EVE dying or not? Ask the EVE-O Death-o-meter!