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Datacore speculation: do or dont?

Author
Arec Bardwin
#41 - 2012-05-09 21:34:41 UTC
Well, someone flipped a lot of mech engineering datacores in Jita. Sell up from 250k this morning to 350k (ish) this evening.
corestwo
Goonfleet Investment Banking
#42 - 2012-05-09 21:57:47 UTC  |  Edited by: corestwo
Yeah and if "RP costs are doubling so cores will double" really holds true, they've got a ways to rise as well. But then again, so do a lot of cores. The only ones that are really "at price" by that metric alone are the non-minmatar starship engineering cores.

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

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Celi Annor
Imperial Shipment
Amarr Empire
#43 - 2012-05-09 23:11:11 UTC
Price Estimates:

Assume most conservative scenario
500 isk/lp and tier 2 sov = 250k a datacore

Most optimistic scenario
1.5k isk/lp tier 1 sov = 800k a datacore


Should see datacores priced 400k-600k
corestwo
Goonfleet Investment Banking
#44 - 2012-05-09 23:31:24 UTC
Celi Annor wrote:
Should see datacores priced 400k-600k

Which is supported by every datacore doubling in RP cost from research agents. Mech Eng cores doubling makes them ~460-500k, nicely within that price range.

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

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Ravenclaw2kk
Native Freshfood
Minmatar Republic
#45 - 2012-05-10 02:59:15 UTC  |  Edited by: Ravenclaw2kk
I am glad that i bought my stock a couple of months ago when i first heard of the changes. I'm not sure if prices will double in the long run as along with the nerf to hi-sec agents and so the supply, there will be an additional source of datacores from FW.

We should see a unified cost of datacores from each faction and 250k - 400k ea, even for the stronger factions doesn't sound unreasonable.

I expect with the introduction of Datacores to the FW store, we will see a general increase in prices fof other FW items

Ship datacores are posed to make the biggest increase in price. While their supply is greater than most other datacores at the moment, we are looking at a big nerf to supply: the multiplier is going down from x3 to x1 (nerfing supply by 300%) and then cost is going from 150RP to 100 RP. So baiscally the cost before change is 50 RP/core where the new cost will be 100 RP/core and FW bunnies won't be buying them up until their price falls in line with the other cores.
IHaveCandyGetInTheVan69
Crouching Woman Hidden Cucumber
#46 - 2012-05-10 10:28:38 UTC
It seems clear that datacores will go up in price with the changes (nerfs to supply no real change to demand) however how large do we think the current stock of datacores are, if there are people sat on 10s of thousands will that smooth the curve of the price over a period of a few months? Or will speculation mean the price is almost at its final value on patch day?

I'm thinking a bit of a robotics type scenario whereby people start trying to dump them once the price goes up a just a little bit but the full profits wont come about for maybe 6 months or so.
Ravenclaw2kk
Native Freshfood
Minmatar Republic
#47 - 2012-05-10 11:46:28 UTC  |  Edited by: Ravenclaw2kk
IHaveCandyGetInTheVan69 wrote:
It seems clear that datacores will go up in price with the changes (nerfs to supply no real change to demand) however how large do we think the current stock of datacores are, if there are people sat on 10s of thousands will that smooth the curve of the price over a period of a few months? Or will speculation mean the price is almost at its final value on patch day?

I'm thinking a bit of a robotics type scenario whereby people start trying to dump them once the price goes up a just a little bit but the full profits wont come about for maybe 6 months or so.


There are a lot of people with spare isk after the last mineral speculation, i imagine that a lot of those people will start buying in over the weekend and following week, pushing the datacores up and a little beyond their final value.

Not a huge amount of players read the forums, so i assume we won't get everyone cashing their RP and dumping their datacores at once, but i wouldn't be surprised to see a few large sell orders coming in. People not following blogs will really lose out as will people who dump datacores before the effects of inferno can be fully realized.

I also believe some of the more educated T2 inventors/manufactures won't be cashing in and will be setting up large orders early in order to keep themselves in cheap datacores over the next few months. This will further push up the price before the patch.

Ship datacores have already gone up 100% in the last couple of weeks, but i imagine their is still plenty of room for an increase. As you say, with a supply nerf and constant demand prices will go up. With a 50% supply nerf it is quite feasible that datacore prices will increase 200-300%.

The final value really depends on how many datacores are going to be injected by FW and i highly doubt they will be able to make up anything close to the 50% Research agent nerf.

The current amount being produced by eve players and their alts is truly staggering atm, i don;t have any numbers, but you have to understand the whole T2 market is pinned on datacores, if you wanted to work out the total volume of datacores produced you'd have to look at the daily traded volume for every T2 item in game (not including ships) and multiply by a factor of 2. This should give a conservative estimate as to the number of Datacores and i am sure that reducing this value by 1/2 will have massive effects on supply and thus the price.

FW won't be able to make up for the missing volume until more players join. Short/Medium-term, datacores will go through the roof but as more people start joining FW we will see prices steadily come back down and settle a little above where they are now.


corestwo wrote:
Celi Annor wrote:
Should see datacores priced 400k-600k

Which is supported by every datacore doubling in RP cost from research agents. Mech Eng cores doubling makes them ~460-500k, nicely within that price range.



FW should have the effect of balancing datacore prices, If mechanical engineering cores are 460~500k ea, then so will every other minmitar datacore. FW introduces the option to buy any type of datacore you like and so FW pilots will always choose the most profitable core thus balancing the market.

Right now, i'd be more interested in the Amarr datacores. Minmitar does have a very strong demand followed by Amarr, however i hear Amarr aren't so good at the FW business.
Arec Bardwin
#48 - 2012-05-10 19:04:50 UTC
I think you are underestimating FW missioners' ability to grind out LP to use on datacores P
Lord Jita
Lord Jita's Big Gay Corp
#49 - 2012-05-10 19:29:46 UTC
Arec Bardwin wrote:
I think you are underestimating FW missioners' ability to grind out LP to use on datacores P


Thats my thought too . i think people expecting these to go up much and busy relisting everything are in for rude awakening.
Twisted
Tradelita
Ducats in Buckets
#50 - 2012-05-10 19:42:06 UTC  |  Edited by: Tradelita
Lord Jita wrote:
i think people expecting these to go up much and busy relisting everything are in for rude awakening.Twisted


Really? Because I woke up this morning to a ****-ton of my relisted datacores having sold at 40-50% markups.
Arec Bardwin
#51 - 2012-05-10 19:46:36 UTC
Tradelita wrote:
Lord Jita wrote:
[quote=Arec Bardwin]i think people expecting these to go up much and busy relisting everything are in for rude awakening.Twisted


Really? Because I woke up this morning to a ****-ton of my relisted datacores having sold at 40-50% markups.

I'm making a killing in profits with relisted datacores as well. We'll see once the fw changes hit on may 20th how the market will respond. Hint: datacores belonging to the lp shop of militias that historically do bad on sov plexing may be well worth investing in, since sov will not be reset Smile
clixor
Celluloid Gurus
#52 - 2012-05-10 20:04:01 UTC
IHaveCandyGetInTheVan69 wrote:
It seems clear that datacores will go up in price with the changes (nerfs to supply no real change to demand) however how large do we think the current stock of datacores are, if there are people sat on 10s of thousands will that smooth the curve of the price over a period of a few months? Or will speculation mean the price is almost at its final value on patch day?

I'm thinking a bit of a robotics type scenario whereby people start trying to dump them once the price goes up a just a little bit but the full profits wont come about for maybe 6 months or so.


I do think you got a point here. There are quite a few players who have done the grind in the past but never bothered to pickup. Only one 1 char i'm sitting on 500k RP. Multiplied by x number of chars. That's a SHITload of cores.

This will keep price down for a while and preventing the FW peops from converting LP to cores (until prices rise enough again).

Tradelita
Ducats in Buckets
#53 - 2012-05-10 20:31:05 UTC
clixor wrote:
IHaveCandyGetInTheVan69 wrote:
It seems clear that datacores will go up in price with the changes (nerfs to supply no real change to demand) however how large do we think the current stock of datacores are, if there are people sat on 10s of thousands will that smooth the curve of the price over a period of a few months? Or will speculation mean the price is almost at its final value on patch day?

I'm thinking a bit of a robotics type scenario whereby people start trying to dump them once the price goes up a just a little bit but the full profits wont come about for maybe 6 months or so.


I do think you got a point here. There are quite a few players who have done the grind in the past but never bothered to pickup. Only one 1 char i'm sitting on 500k RP. Multiplied by x number of chars. That's a SHITload of cores.

This will keep price down for a while and preventing the FW peops from converting LP to cores (until prices rise enough again).



No doubt there are a ton of unclaimed RP out there, but doubtless as well is that a large percentage of it will be sitting in accounts belonging to people who don't read forums, dev blogs or patch notes, and will be surprised, or indeed not even notice, the RP cost of their datacores doubling, especially if they haven't cashed in in years.

Then you've got to consider the people who are aware of the changes, but will simply cash out quickly and dump into buy orders.
Ravenclaw2kk
Native Freshfood
Minmatar Republic
#54 - 2012-05-11 00:54:42 UTC  |  Edited by: Ravenclaw2kk
clixor wrote:
IHaveCandyGetInTheVan69 wrote:
It seems clear that datacores will go up in price with the changes (nerfs to supply no real change to demand) however how large do we think the current stock of datacores are, if there are people sat on 10s of thousands will that smooth the curve of the price over a period of a few months? Or will speculation mean the price is almost at its final value on patch day?

I'm thinking a bit of a robotics type scenario whereby people start trying to dump them once the price goes up a just a little bit but the full profits wont come about for maybe 6 months or so.


I do think you got a point here. There are quite a few players who have done the grind in the past but never bothered to pickup. Only one 1 char i'm sitting on 500k RP. Multiplied by x number of chars. That's a SHITload of cores.

This will keep price down for a while and preventing the FW peops from converting LP to cores (until prices rise enough again).



I think you are underestimating the weekly volume of datacores consumed. Nanite engineering, which is maybe the least used datacore, sees about 50k datacores bought in the forge, that's 2.5m RP per week just put on the market it doesn't even count orders placed in research agent systems or the volume consumed by inventors cashing in their own RP.

more popular datacores, like mechanical engineering, have 10x that volume in the forge, so that is 25m RP's worth sold in the forge alone. I'm not saying people won't cash in and dump on the market as they will, but when that happens that will be the best opportunity to buy.

As it stands, there will be a severe shortage right after inferno that will last at least a few months untill the FW people get their asses in to gear and start grinding LP to take advantage of the high prices of cores.

Even when they do, i doubt they will be able to make up the missing volume until more people join FW.

Look at the market volume of datacores in the forge and halve that. that is the minimum quantity of datacores that FW will have to inject into the system, the real volume could well be 4x as high as again, you are not counting other trade hubs and systems and you are not counting the people who use thier own RP for invention.

At the end of the day supply is getting a huge nerf and while people cashing in will serve to balance the market somewhat we will still be in for a wild ride as demand will soar pre-patch as inventors start buying up their own stockpile. The lesser collected datacores will go up by the most in the coming weeks followed by a general rise. I predict prices won't settle to a new equilibrium for another 4-6mo.
PC5
project HAVEN
#55 - 2012-05-11 06:37:28 UTC  |  Edited by: PC5
Little light to your 'investment plans'...

Lets assume i have 2m LPs for exchange in Amarr FW LP store.

Usually ppl will go for ships then conversion ratio isks/lp looks like this:

Scenario where Amarr militia gets only TIER2 (very probable)

Apocalypse Navy Issue 500k LP + Apock Hull + Chip

Lets assume 450m constant sell price.

NAME - ISKs per LP

Apoc sov Tier1 310
Apoc sov Tier2 620
Apoc sov Tier3 1240 <- Currently status on TQ
Apoc sov Tier4 2480

Lets look at datacores in Tier2 scenario. Lets assume datacore price 250k isk

NAME - ISKs per LP[/b]
Datacore sov Tier1 250
Datacore sov Tier2 1500
Datacore sov Tier3 4000
Datacore sov Tier4 9000

As you can see its more profitable to go for datacores than for ships if datacore price will be around 250k/unit.

Lets say datacore costs 200k isk
Datacore sov Tier1 0
Datacore sov Tier2 1000
Datacore sov Tier3 3000
Datacore sov Tier4 7000

In 200k/unit scenario conversion isk on tier 2 is still acceptable and ppl will go for it like theyre going for ships with similar conversion ratio - 1000 isk / LP

Things start to look intresting at Tier3 - 3000 isk / LP for datacore costing 200k/unit where conversion ratio is very good and ships get... only 1240 Who smart would go for ships when you can get 3000 for datacores ? :)

Lets assume datacore will be 150k / unit and look at tier3 scenario

Datacore sov tier1 -500
Datacore sov tier2 0
Datacore sov tier3 2000
Datacore sov tier4 3000

To get 1000isk/LP ratio datacore in tier3 would have to sell for 100k/unit

In Tier3 we can still get 2000 isk / LP even if datacore price sill be 150k/unit. Thats good ratio.


Now lets go back to my 2m LPs... for that i can buy on poor tier2 scenario :
2 000 000 LP / 500 LP * 5 = 20 000 datacores
I would have to pay in isks : 4000 * 500k = 2b (see isk sink in here from CCP?)
I would sell them for 20 000 * 250k = 5b
Profit : 5b - 2b = 3b

Now tell me what profit would i get with your cosmic 400k+/unit datacore prices?
And look at those bilions which will go for exchanging datacores...
Curently if ppl buy ships from LP store they give LPs + Hull = Ship - with datacore scenario CCP creates isk sink for billions of isk.
Ravenclaw2kk
Native Freshfood
Minmatar Republic
#56 - 2012-05-11 14:41:39 UTC  |  Edited by: Ravenclaw2kk
PC5 wrote:
Little light to your 'investment plans'...

Lets assume i have 2m LPs for exchange in Amarr FW LP store.

Usually ppl will go for ships then conversion ratio isks/lp looks like this:

Scenario where Amarr militia gets only TIER2 (very probable)

Apocalypse Navy Issue 500k LP + Apock Hull + Chip

Lets assume 450m constant sell price.

NAME - ISKs per LP

Apoc Tier1 310
Apoc Tier2 620
Apoc Tier3 1240 <- Currently status on TQ
Apoc Tier4 2480

Lets look at datacores in Tier2 scenario. Lets assume datacore price 250k isk

NAME - ISKs per LP[/b]
Datacore Tier1 250
Datacore Tier2 1500
Datacore Tier3 4000
Datacore Tier4 9000

As you can see its more profitable to go for datacores than for ships if datacore price will be around 250k/unit.

Lets say datacore costs 200k isk
Datacore Tier1 0
Datacore Tier2 1000
Datacore Tier3 3000
Datacore Tier4 7000

In 200k/unit scenario conversion isk on tier 2 is still acceptable and ppl will go for it like theyre going for ships with similar conversion ratio - 1000 isk / LP

Things start to look intresting at Tier3 - 3000 isk / LP for datacore costing 200k/unit where conversion ratio is very good and ships get... only 1240 Who smart would go for ships when you can get 3000 for datacores ? :)

Lets assume datacore will be 150k / unit and look at tier3 scenario

Datacore tier1 -500
Datacore tier2 0
Datacore tier3 2000
Datacore tier4 3000

To get 1000isk/LP ratio datacore in tier3 would have to sell for 100k/unit

In Tier3 we can still get 2000 isk / LP even if datacore price sill be 150k/unit. Thats good ratio.


Now lets go back to my 2m LPs... for that i can buy on poor tier2 scenario :
2 000 000 LP / 500 LP * 5 = 20 000 datacores
I would have to pay in isks : 4000 * 500k = 2b (see isk sink in here from CCP?)
I would sell them for 20 000 * 250k = 5b
Profit : 5b - 2b = 3b

Now tell me what profit would i get with your cosmic 400k+/unit datacore prices?
And look at those bilions which will go for exchanging datacores...
Curently if ppl buy ships from LP store they give LPs + Hull = Ship - with datacore scenario CCP creates isk sink for billions of isk.



you are correct that datacores will be very attractive for FW pilots.... nothing new here. THEY WILL AND ARE MEANT TO BE.... yes i shouted, sorry. The real question is whether or not the LP generated thru FW can make up the shortfall produced by the Hi-Sec nerf.

oh, and all FW items will increase in value now they have added an extra "sink" it's not just datacores that you should be investing in.

in addition to this, the ability to upgrade hubs and control systems will certainly dictate and balance datacore prices. it would be a afllacy to assume that all factions will be upgraded to tier 3.
Arec Bardwin
#57 - 2012-05-11 15:41:12 UTC
Ravenclaw2kk wrote:
The real question is whether or not the LP generated thru FW can make up the shortfall produced by the Hi-Sec nerf.
With those isk/lp rates he estimates FW will crawl with farmers.
PC5
project HAVEN
#58 - 2012-05-11 17:40:37 UTC  |  Edited by: PC5
Arec Bardwin wrote:
Ravenclaw2kk wrote:
The real question is whether or not the LP generated thru FW can make up the shortfall produced by the Hi-Sec nerf.
With those isk/lp rates he estimates FW will crawl with farmers.


Its not about farmers - its about what ppl will chose in LP store. Every noob with even 5 LPs knows ships are most common choice. If ppl will hear that its profitable to chose datacores - theyll go for it.

If i remember corectly my quick math those are isk levels where 5 datacores = 1000isk/lp barrier.

Tier1 - 400k isk
Tier2 - 200k isk
Tier3 -100k isk
Tier4 - 50k isk
Tier5 - 25k isk

Quick math for Tier2 sov
5 datacores for 500lp + 500k isk. If datacores sells for 200k isk thats 5 x 200k = 1m income
1m - 500k (paid to lp store) = 500k isk / 5 datacores of real profit for player
500 000 isk / 500 LP = 1000 isk / LP

What those numbers mean? If datacore which is sold for example in Amarr FW LP store costs on market more than 200k isk - AND Amarr Militia has sov tier 2 ppl will be dumping tons of datacores to the market from LP store because it will give them more than basic 1000isk/lp ratio.

I would be very careful about investing into datacores. ATM minmatars are capable of achieving at last Tier3 or maybe even Tier4 if they will have motivation.
Mechanical enginering datacores costs now 319k/unit in Jita. If you look at my calculations - ppl will be buying those datacores in tons from LP store - because they will have over 2000+ lp/isk ratio.

319k vs 100k (from tier3 scenario)

Who have brain and can count - do the math - figure it out yourself.
I wonder for how long prices will stay as they are.

Big conclusion:
- prices may go down like rollercoaster and if that wont happen FW ppl will get juicy isks from datacores if prices wont drop
- very nice isk sink - win for CCP
- profit!
Ravenclaw2kk
Native Freshfood
Minmatar Republic
#59 - 2012-05-11 17:45:23 UTC
"Will" being the key word. It will take time for people to upgrade their system and players to join FW. The thing to remember is that not all factions will be at tier 3 at once, so there will be volatility on the markets, you just have to chose what you are going to buy carefully.

Furthermore, if datacore prices start to hit the 2misk/1000lp rate, other FW LP items will increase in price.
corestwo
Goonfleet Investment Banking
#60 - 2012-05-11 17:52:02 UTC
"Every noob with even 5 LPs knows ships are most common choice. If ppl will hear that its profitable to chose datacores - theyll go for it. "

Resulting in everything else getting neglected and rising in price until they're attractive options.

There's also the rather entertaining idea of just how much LP will be required to really supply datacores properly, but that's another matter...

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

fofofo